Paul Pogue Prison sentencing set for August 27th… Outcome: Probation or Prison?

I know what it feels like on a day like today.  Much like Paul Pogue has done or is doing, I, too, walked up the steps into a federal courthouse, faced a judge and heard a verdict that was life changing.  I, too, like Paul Pogue had plead guilty to tax evasion.  Our circumstances were quite different, but the crime, in the eyes of the law, was the same.

Today – Paul Pogue – steps before a judge and finds out his sentence.

For more details my past post is here:  http://chuckgallagher.wordpress.com/2010/02/24/paul-pogue-texan-guilty-of-tax-evasion-it-is-that-time-of-year/

In my case the judge said – “18 months active and 3 years probation” – and with that the gavel fell and my life changed.

By the time this is posted, Paul has likely heard his sentence.  And, while I have no crystal ball, I would suspect from the reported crime and amount of tax evaded, Paul will receive a sentence much like mine.  I’d guess 12 to 18 months active with probation following as well as order to pay back taxes, interest and penalties.  Probation is possible, but based on the sentence in another Dallas tax evasion case where a 40 month sentence was issued, it will be interesting to see if the court is lenient on Mr. Pogue.

UPDATE:  JUDGMENT – PROBATION 3 YEARS

When the sentence is reported…I will update this blog for those who follow.  Meanwhile, the following should be noted:

• Good people can make bad choices and every choice has a consequence which can include Prison!
• We must face the consequences of our choices and we will either – from future choices become victims or victors!
• Paul and his family will need your support and kindness during this process which I bet is unfamiliar territory!
• We are not defined by our past choices, rather our future and the impact we have on others is defined by the choices we make today!

As always – YOUR COMMENTS ARE WELCOME

John Nicholas Sheets faces Prison and a $2.4 million fine for Tax Evasion. Business Ethics and the IRS

John Nicholas Sheets, a.k.a. “Nicky,” was sentenced by U.S. District Judge Jane J. Boyle to 40 months in prison and ordered to pay $2,408,662 in back taxes, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Sheets pleaded guilty in March to one count of tax evasion.

As a business ethics and fraud prevention speaker, I can’t begin to tell you how many times, especially with the high profile case of Wesley Snipes, that I’ve warned folks to pay careful attention to the tax man.  Likewise, I can’t tell you how many times I’ve received emails, notes and even a DVD telling me I was crazy – that the tax law is unconstitutional.

Well…I DON’T CARE about the constitutionality of the tax law, facts are, if you don’t pay your taxes – YOU’LL GO TO PRISON.  And, having been there – (not that I’m proud of that – I am not) it (PRISON) is not fun.  Put bluntly, Nicky is not going to have a good time in Club Fed!

According to documents filed, Sheets is a licensed realtor who has worked in North Texas for several years. Since 1996, Sheets and his wife have successfully worked as real estate agents and have established multiple closely-held businesses including Eleanor Mowery Sheets, Inc.; Dallas EMS, LLC; and E-Residential, LLC.

According to court records, Eleanor Mowery Sheets pleaded guilty last month to four counts of failing to pay income taxes. Her sentencing is set for October 12, 2010.

In the filed documents, John Nicholas Sheets stipulates that he has substantial unpaid individual and corporate tax debts from 1997, 1998, 1999, 2001, 2005, 2006, 2007 and 2008 totaling approximately $2.7 million, including penalties and interest.

Now…I can understand a mistake or misapplication or interpretation of tax law – but, Sheets efforts go above and beyond misapplication or misinterpretation to blatant fraud.  Seems that Sheets was more concerned about his lifestyle than he was about the freedom that he had as an American to pursue his American dream.

I don’t know John Nicholas Sheets, but having lived in the Dallas area for some time, I would say that he would have been looked on in his community or circle of friends as an honest, ethical business man.  If I am wrong, I hope someone will kindly share an alternative view (COMMENTS ARE WELCOME).  Assuming that he was well respected, I have ONE QUESTION:  What do you think caused Sheets to stray so far from compliance with the tax law?

According to the US Attorney’s news release:

The documents further state that beginning in 1998, rather than pay his substantial tax debts, Sheets used various business entities to conceal the nature and extent of his assets. Sheets admitted to transacting personal business and paying personal creditors with these funds, rather than paying the Internal Revenue Service (IRS). Using these businesses, Sheets commingled funds to pay approximately $435,988 in mortgage interest to three lenders so that he and his wife could live in a home whose market value exceeded $1.3 million during that period. Sheets also stipulated that he used commingled funds to buy personal items (including an interest in a private airplane and vehicles) and pay numerous personal creditors.

Sheets further admitted that on April 5, 2006, he used a local check-cashing business to conceal the nature of his assets so as to avoid paying federal income taxes. Specifically, he took a $123,000 settlement check to the local check-cashing business to conceal the existence of the funds, and rather than deposit the check into his personal bank account for free, he paid more than $2000 to cash that check. None of the cash he obtained on this date was used to pay the IRS; he used the funds to pay for personal expenses and pay other creditors. The factual resume goes on to state that Sheets negotiated the check in this manner upon the advice, recommendation and suggestion of his attorney at the time.

Sheets wife (pictured above), like her husband, faces a sentence for tax evasion.  The conviction of spouses in tax crimes is becoming more common and a BIG WARNING SIGN should be out to all – that when you sign your return you should know what you’re signing, as evasion issues don’t typically rest with one party in a “married filing jointly” return.

If you know Mr. Sheets or have insight into his motives, please feel free to comment.

Ethics – The truth, Governor David A. Patterson and some Yankee’s tickets – This is no home run!

Funny thing about “truth” and “ethics” – the definition of both are in the eye of the beholder and neither are always black and white.  As a business ethics speaker, I find that I am called on frequently to define “business ethics” and when the presentation is over – all agree that you can’t define something that isn’t concrete.  That said, the news today is filled with stories about something that to some is not news worthy and too others is at the heart of trust – a solid component of ethical behavior.

The New York Times reports:

Gov. David A. Paterson misled investigators for the state ethics commission when he testified that he had intended to pay for free tickets he obtained to last year’s World Series, according to a report issued on Thursday by an independent counsel investigating the matter.

But the independent counsel, Judith S. Kaye, said it was up to the local district attorney in Albany, P. David Soares, to decide whether Mr. Paterson, a Democrat, should be prosecuted for perjury.

Now…as I read this story, I found myself confused.  What’s all the fuss about?  Then it became clear…it is not about the World Series or whether the Governor attended – taking his son and friends.  This story is about the truth!  This story is about whether Governor David A. Patterson has – as his moral compass – a foundation of ethical behavior when it comes to his actions and his words being congruent.  I do understand, as I had that very issue posed to me just yesterday.  Funny, but how two people perceive the truth can be very different.

The story goes on to state:

Aides to Mr. Paterson obtained five tickets to the first game of the 2009 World Series, which Mr. Paterson attended along with two aides, his son, Alex, and a friend of his son.

The tickets eventually came under the scrutiny of the state’s Commission on Public Integrity, which found that Mr. Paterson had never intended to pay for his own ticket and only paid for his son and son’s friend after the news media inquired about the matter.

The commission also concluded that Mr. Paterson had lied during his testimony about the tickets, a matter the commission referred last spring to Attorney General Andrew M. Cuomo, who in turn asked Ms. Kaye to investigate.

Now…as a business ethics speaker, it is my role to uphold the highest of ethical actions and interpretations.  But, let’s just call it like it is… with our lives effectively placed at the fingertips of technology, I wonder if this were 40 years ago, would anyone care?  And, if the answer to that is “No” – heck they wouldn’t have even known…  then why do we care today?  40 years ago – O.K. maybe 50 – the standards of society were vastly different.  JFK could have affairs and, at the time, no one was the wiser (other than his inner circle).  Now, everything is recorded and one false move and you’re toast in the media.

STOP…but I know, the issue isn’t the tickets, it is what he said about them.  He lied, so says the investigative panel.

At a minimum, portions of Mr. Paterson’s testimony “were inaccurate and misleading,” the report concluded, and “warrants consideration of possible criminal charges by the District Attorney, who will make the ultimate decision regarding whether or not charges should be brought.”

So, what was the ethical thing to do?

ANSWER ONE:  Don’t take the tickets unless the Governor could buy them just like “Joe Q Public” – Rank does not have it’s privilege.

ANSWER TWO:  Use your position as Governor to get the tickets (after all you are the Governor and rank does have it’s privilege), but pay the fair market price for them.

ANSWER THREE:  When asked about the purchase of the tickets (now here’s where it get’s dicey), tell the truth and state that you did not pay for them, but would recognizing that it looked bad to use “free” tickets to see the World Series

ANSWER FOUR:  When asked, bumble the question, state a half-truth and get your butt busted by all major media outlets.

CONCLUSION: Answer Four – is the worst of the options and shows that the Governor (as an elected politician of power) is human and subject to mistakes.  However, the unfortunate thing is – our standard of ethics and ethical behavior has swung so far to one side that we believe that privilege should provide no benefit.

Does that cause you to ponder the ethics of privilege?  One thing that stands out for me is – the truth will set you free.  Some folks don’t like the truth and others are afraid of it, but if Governor Patterson had told the truth, the outcome would likely be vastly different.

YOUR COMMENTS ARE WELCOME!

Gay Rights Boycotts threaten Best Buy and Target claiming lack of Business Ethics? Really?

Seems that today must be my day to write about things that create controversy.  First, I wrote about the US Department of Justice hiring folks who speak “Ebonics” and got called a racist and now I’m writing about gay folks who are boycotting businesses who are not “gay” friendly.  Why not?

Barbara Farfan, on August 24, 2010 wrote the following:

Here’s why the U.S. retail industry in general and Target (TGT) and Best Buy (BBY)  in particular can’t afford to ignore the ongoing boycotts that are being led by the LGBT community in protest of corporate campaign contributions to an anti-gay rights politicial candidate. According to statistics quoted by the Human Rights Campaign (HRC), a gay rights advocacy organization:

• The buying power of the LGBT community was $759 billion in 2009
• 78% of LGBT people are likely to do business with companies that are known to have gay-friendly workplaces

I started looking at this wondering how did it hit my radar screen when I write about Business Ethics and fraud prevention?  Rarely, and I mean rarely, do I have anything to say about “Gay” rights.  So when this article popped up I was taken back a bit.  I mean who knew that there were organized boycotts?  (Opening #1 for critical comment – just pointing these out for those who wish to take the time to share an opinion – which is welcome).  Barbara goes on to say:

The largest U.S. retail chains have a customer base in the millions, so 300,000 lost customers scattered around 50 states may not seem significant. But in the past three years, we’ve seen retailers do some crazy Hail Mary marketing in order to lure customers through the front door. To alienate 300,000 consumers in one fell swoop is not an insignificant thing. And certainly it is not fiscally responsible in the midst of what is only a technical recession recovery to drive consumers with $759 billion in their pockets to the doorsteps of the competition.

Last week the HRC announced that it would be removing both Target (TGT) and Best Buy (BBY) from its list of gay-friendly companies recommended on its LGBT shopping guide. The HRC has apparently made good on that threat because as of this writing, Target and Best Buy are now absent from that list.

Target has been the main target of the consumer protests that refuse to die, but Best Buy is equally as culpable in its support of a Minnesota political candidate who openly opposes gay rights. While the support of the candidate is offensive to the LGBT community, the betrayal is worse. At the political point of purchase, both Best Buy and Target proved that gaining a political advantage was more important than losing LGBT customers.

Ahhh…now I’m beginning to see…it’s politics in action.  In order to be a “gay friendly” establishment the business enterprise must bite – hook – line – and sinker the LGBT community position?  Really?  Somehow I’m beginning to sense that this is way out of whack since Barbara states: (oh…yea here’s the #2 spot to fire in there with comments)

The reason the LGBT community feels so betrayed is because Target and Best Buy are both well-known for their gay-friendly workplace policies. Both companies received perfect Corporate Equality Index Ratings from the Human Rights Campaign (HRC) organization in 2010. This means that in every way that the HRC measures, Best Buy and Target are gay-friendly with their employees. With their perfect scores, Best Buy and Target both earned a spot on the HRC’s 2010 “Best Places to Work for LGBT Equality” list.

There are specific sexual orientation non-discrimination policies in the Best Buy employee handbook. The benefits provided to same sex partners are almost identical to the benefits provided to opposite sex spouses of Best Buy employees. There are LGBT employee resource groups accessible to Best Buy lesbian, gay, bisexual and transgender employees. There are even written policies and procedures addressing employees making sexual transitions while working at Best Buy.

Hum…both Best Buy and Target are ranked as best places to work by the LGBT and yet the are now being boycotted?  Sorry, but I’m lost.  Let me put it this way, if someone ran for President, whose policies I 90% supported, but they had one aspect that I disagreed with – would I vote for my candidate or his/her opponent?  Seems to me that the LGBT is skewed in their approach to ethical behavior – favoring rather an all or nothing approach which could prove more harmful than gainful to their supporters.

Best Buy has published a “Code of Business Ethics” document which talks at length about the principles and philosophies that (supposedly) guide the decisions of its leaders and employees. On page two of that document, it says this:

• “ETHICS AND ACTION – Ethics is about putting principles into action. Consistency between what we say we value and what our actions say we value is a matter of integrity.”

Now here’s where Barbara and the LGBT are missing it.  She states: “You’re right, Best Buy. The difference between saying that you support LGBT rights and taking an action to support a man who would be in a position to squash LGBT rights is a matter of integrity. And that is what consumers are upset about.”

Consumers are upset – really?  Consumers are more concerned about their jobs, their livelihoods, their families and getting the economy back on track than they are about a campaign contribution made by Target or Best Buy.  Shucks…if you were going to buy a nice big flat screen TV where else would you go other than Best Buy?  Circuit City (oops they’re out of business)…O.K. maybe Wal-Mart – but good luck on support from Wally World.  (I know here’s spot #3 to really get the dander up and comments flowing)

While Ethics may be about putting principles into actions, Ethics does not demand that every action be congruent with what a minority group feels is in their best interests.  In fact, Mr. Spock said it best in Star Trek II (I think) – “Jim…the needs of the many outweigh the needs of the few.”  My guess is – Best Buy, Target and others find that the candidate that they support have many positive positions and attributes that are business friendly…that keep people employed…employed in a gay tolerate atmosphere – which, by the way, is good for all.  That is ethical principles put into action.

Barbara writes – Right again. Sometimes an ethical organization chooses to do less than the law allows. In this case, doing less than the Citizens United Supreme Court ruling allows would have meant exercising financial restraint in not supporting a candidate who openly seeks to oppress a significant segment of your customer population, no matter how much his business politics will benefit the company’s bottom line.

So, perhaps Best Buy should gather together all those who are authorized to make political contributions in a boardroom and read page two together. Out loud. And then discuss.

I agree, but those who need to be discussing are Barbara and the folks at the LGBT, cause it seems that they are so focused on a narrow agenda that they might miss the opportunity to enhance employment in those companies who do have to face shareholders who (honestly) care more about the bottom line than a minority group that feels slighted cause a candidate is not “position” friendly.  (here’s another great place to attack me with your comments – just saying).

It seems like Target and Best Buy are just waiting for the firestorm of consumer protests to burn itself out or allow the next big corporate drama to take over the headlines. Here’s why that’s probably not going to happen any time soon…The HRC does a pretty masterful job at organizing and motivating LGBT activism. The LGBT community is encouraged to support the corporations that support the LGBT community. And that reciprocal back-scratching philosophy is backed up by some well-executed infrastructure.

Let me clearly state – I support the right of citizens to support (or not) vendors and businesses of their choice.  There is power in spending and taking a position.  I, however, exercising my freedom of speech, believe that Ethical behavior is not an all or none position.  It is not black and white – gay friendly or not.  Rather the application of ethics looks at the whole and asks – is the behavior of the company (in this case) – individual – or group (LGBT) acting in the best interest of ALL concerned.  I, for one, love to shop at Best Buy and wouldn’t find my choice changed whether Best Buy supported a black, Hispanic or white candidate or one who supported abortions or not – I shop where I shop because of how they treat their customers and a misguided (my opinion) boycott is pushing the envelop of what the definition of ethical behavior is.

Barbara nice article however and to all who read – YOUR COMMENTS ARE WELCOME!

Federal Government Job Opportunities for Inner City Youth – Ebonics a must!

On AUGUST 23–The Department of Justice published an article stating that it “is seeking to hire linguists fluent in Ebonics to help monitor, translate, and transcribe the secretly recorded conversations of subjects of narcotics investigations, according to federal records.”

The article caught my attention and I must admit I began to laugh – at first.  Having spent time in federal prison (not something I am proud of) I know the frustration of dealing with a second language.  As a white well educated male I found quickly that I did not possess the language skills needed to successfully navigate the time before me I was to spend in prison.  I knew English and fractured “Southern” – red neck some folks would call it.  What I did not know was Spanish and – more importantly – Ebonics.

When my cell mate spoke first to me – asking me what I was in here “fo”?  I responded, “I’m a theif.”  His response was “Word?”  I suppose I looked dumbfounded as I repeated what he said back to him with a questioning look.  “Word?”  Now to read this doesn’t do it justice.  You have to have the dialect and intonation to get the message.  In short, we weren’t communicating.

Then Buck – that was my cell mates name.  Buck and Chuck – don’t know if the guards did that for comic relief, but we did make a good pair.  Anyway, Buck, realizing the lack of communication said he’d make me a deal.  He’d teach me Ebonics (and/or how to survive in prison) if I’d teach him “how to speak correctly” so he could get a real job when he got out.  Deal!

But back to Federal Government Job Opportunities…

The article goes on to state:

A maximum of nine Ebonics experts will work with the Drug Enforcement Administration’s Atlanta field division, where the linguists, after obtaining a “DEA Sensitive” security clearance, will help investigators decipher the results of “telephonic monitoring of court ordered nonconsensual intercepts, consensual listening devices, and other media”

The DEA’s need for full-time linguists specializing in Ebonics is detailed in bid documents related to the agency’s mid-May issuance of a request for proposal (RFP) covering the provision of as many as 2100 linguists for the drug agency’s various field offices. Answers to the proposal were due from contractors on July 29.

Ebonics has widely been described as a nonstandard variant of English spoken largely by African Americans. John R. Rickford, a Stanford University professor of linguistics, has described it as “Black English” and noted that “Ebonics pronunciation includes features like the omission of the final consonant in words like ‘past’ (pas’ ) and ‘hand’ (han’), the pronunciation of the th in ‘bath’ as t (bat) or f (baf), and the pronunciation of the vowel in words like ‘my’ and ‘ride’ as a long ah (mah, rahd).”

O.K. it’s funny to read or try to read how white folks describe and write Ebonics…sorry, but this just cracks me up…!

The Department of Justice RFP does not, of course, address questions of vernacular, dialect, or linguistic merit. It simply sought proposals covering the award of separate linguist contracts for seven DEA regions. The agency spends about $70 million annually on linguistic service programs, according to contract records.

In addition to the nine Ebonics experts, the DEA’s Atlanta office also requires linguists for eight other languages, including Spanish (144 linguists needed); Vietnamese (12); Korean (9); Farsi (9); and Jamaican patois (4). The Atlanta field division, one of the DEA’s busiest, is the only office seeking linguists well-versed in Ebonics. Overall, the “majority of DEA’s language requirements will be for Spanish originating in Central and South America and the Caribbean,” according to one contract document.

The Department of Justice RFP includes a detailed description of the crucial role a linguist can play in narcotics investigations. They are responsible for listening to “oral intercepts in English and foreign languages,” from which they provide verbal and typed summaries. “Subsequently, all pertinent calls identified by the supervising law enforcement officer will be transcribed verbatim in the required federal or state format,” the RFP notes.

Additionally, while “technology plays a major role in the DEA’s efforts, much of its success is increasingly dependent upon rapid and meticulous understanding of foreign languages used in conversations by speakers of languages other than English and in the translation, transcription and preparation of written documents.”

So here’s the deal…

If the government is truly serious about hiring folks to have a legitimate job helping with Ebonics…they should look to the inner city youth, inmates being released from prison or other folks who find Ebonics their first language and English (or talking to white folks) their second language.  And if readers think I’m kidding…I’m not.  Why not go to Detroit or inner city Miami or other Ebonics hot spots and offer a job to someone who otherwise might find themselves on the wrong side of the law some day.

If Frank Abagnale (of Catch Me If You Can – the movie – fame) can turn crime into crime stopping support – so can inner city youth.  Let’s put stimulus dollars to work in a productive way.

YOUR COMMENTS ARE WELCOME!

Special Strategy Session featuring Dan Frishberg – Really!? Who would trust a man investigated for potential fraud by the SEC?

I find myself amazed.  Amazed that Dan Frishberg – the subject of an SEC investigation – the centerpiece of a substantial Houston, TX fraud – would still have the guts to tout himself as a major source of money and investment advice.  I suppose that there are times when reality just isn’t reality – especially when it comes to Dan.

Strategy Session featuring Daniel Frishberg
Wednesday, September 22, 2010
7:00 p.m. to 9:00 p.m.
Space is Limited. Reserve Your Seat Immediately!!!
To RSVP Contact Sonia Joao sjoao@barringtonfinancial.com

So it seems that Sonia, Dan’s former employee is not employed by Barrington.  Convenient and raises questions as to whether Barrington is not just a pawn in the massive fraud that Dan is effecting.  Just asking?

Note: The date has been changed. If you have already signed up for August 26, your RSVP has been counted and you will be notified of the change.

Wonder if this date change is evidence that Dan did not get the turn out that he expected on August 26th.  Maybe folks in the Houston area are wising up to Dan’s tricks of illusion and deception.  Just asking?

Dan Frishberg would like to invite you to attend a special Strategy Session event. More than ever now, with all of the current political and economic uncertainty, investors must be prudent with their money. Come hear about ways to invest safely in an unfamiliar market and get a few capital gains picks as well.

Sorry, but what a crock of (you know what).  Uncertainty!  Really?  What is uncertain is what Dan will do with your money once he gets his clutches on it.  Buyer or investor beware!

Join us on Wednesday, September 22, 2010 from 7:00 p.m. to 9:00 p.m. at the Houston City Club for our new strategy event in Houston. It’s free to attend, but if you want a seat, you must RSVP.

September 22, 2010
7:00 p.m. to 9:00 p.m.
Space is Limited. Reserve Your Seat Immediately!!!
To RSVP Contact Sonia Joao sjoao@barringtonfinancial.com 713-490-8728

This Event is FREE but you must RSVP
Contact: Sonia Joao at 713-785-7100 or  sjoao@barringtonfinancial.com

What can I say…when a person like Dan cannot face reality and take positive actions to help those who have blindly been defrauded…well there is no reason for folks to call themselves victims if they listen to Dan now.  Buyer or investor beware!

America’s Most Famous Jailhouse lawyer – Michael Ray – wins verdict!

From time to time I have the opportunity to report on interesting issues that arise as I review reports for my ethics and fraud prevention blog.  Michael Ray is a unique individual who has quite the story to tell.  Below is a report issued in South Carolina Lawyers Weekly that I have reprinted with permission from Michael Ray.

A former prison law clerk who was once investigated for practicing law without a license and who calls himself “America’s Most Famous Jailhouse Lawyer” is basking in the limelight of a $23,000 verdict.

Michael R. Ray said an Horry County jury took about an hour to return the verdict in Ray v. Park, case No. 2007-CP-26-00922. Circuit Court Judge Larry B. Hyman presided.

Ray, a former federal inmate who provided legal assistance to other prisoners for 29 cents an hour, made national headlines in 2008 when he got the U.S. Supreme Court to hear arguments in one of his cases. The court ruled against his client, Ray said.

Today, Ray works at a retail store, handles what he calls “freelance work” for lawyers and enjoys his notoriety as a former jailhouse lawyer.

Submitting information about the verdict to Lawyers Weekly, he included the title “America’s Most Famous Jailhouse Lawyer” along with his name and contact info.

He said he received the moniker from The Associated Press, which covered the Supreme Court case and a subsequent state investigation into whether Ray was practicing law without a license.

“The case took on a life of its own, and the AP ran with it,” Ray said. “It was run internationally, and I still get letters today from people all over the place trying to get me to help on their cases.” In the July 28 Horry County verdict, Ray won $8,000 in punitives and $15,000 in actual damages. Both he and the defendant were pro se, raising some unusual procedural issues for Judge Hyman, Ray said.

“It’s a difficult thing for a judge to have one pro se party, let alone two pro se parties. Testimony becomes a problem. Evidence becomes a problem. So he relaxed all the rules with our agreement, and we proceeded,” Ray said.

The case revolved around Ray’s claims that the defendant violated an agreement to store and care for Ray’s belongings while Ray was serving a six-year prison sentence in connection with a real estate scheme in Myrtle Beach. Ray, who completed the sentence in April 2008, was still in prison when he sued on a variety of claims, including breach of contract and conversion.

The defendant denied the claims in his answer.

Ray said the trial judge didn’t know about his activities as a jailhouse lawyer or a state investigation into whether Ray was practicing law without a license in the U.S. Supreme Court appeal. The state later dropped the probe, he said.

“Judge Hyman was not aware of any of that going into the trial,” Ray said. “He just thought he had two pro se litigants that were going to try a case. He did commend me after the trial on my conduct.”

VERDICT REPORT

Brief statement of claim: Breach of contract, conversion

Principal injuries (in order of severity): $15,000. Loss of property, loss of money/valuables

Special damages: $8,000 punitives

Tried or settled: Tried

County and court where tried or settled: Horry County Court of Common Pleas

Case name and number: Ray v. Park, case No. 2007-CP-26-00922

Date concluded: July 28, 2010

Name of judge: Hon. Larry B. Hyman

Amount: $23,000

Insurance carrier: None

Attorney for plaintiff: Michael R. Ray, pro se (Myrtle Beach)

Other useful info: This case was tried in the circuit court without counsel on either side, which the trial judge described as a “very rare occurrence,” according to the plaintiff. After a two-day jury trial, the verdict finding in favor of the plaintiff on all grounds was rendered in about an hour.

Summer intern law students from both the University of South Carolina and the Charleston School of Law attended the trial and watched as the plaintiff presented his case and examined and cross-examined the witnesses. After the trial, one of the students said he had automatically assumed that the plaintiff was a licensed attorney simply prosecuting the case himself, according to the plaintiff’s report.

The plaintiff claimed that the defendant was entrusted with the plaintiff’s property and that the defendant agreed to sell some of the property to protect the remainder. The plaintiff claimed that, after he verbally and formally demanded the return of the property, the defendant either destroyed or sold the remainder.

The jury found that there was not only a verbal contract, but that its terms were clear, there was an offer, an acceptance and, foremost, a definite agreement by the parties. They further found that the defendant acted maliciously and with fraudulent intent, and they awarded punitive damages.

Judge Hyman thanked the plaintiff for his professionalism and conduct during the trial, even though it was difficult for the judge to preside over non-attorneys, the plaintiff said. The judge relaxed some of the procedural requirements, etc., according to the plaintiff.

Submitted by: Michael R. Ray

Editor’s note: The information in Lawyers Weekly’s verdicts and settlements reports was submitted by the counsel for the prevailing party and represents the attorney’s characterization of the case.

Forex Fraud: Scams, Scum, and How to Defeat the Designs of a Con Artist

GUEST ARTICLE by Vincenzo Desroches

Nothing can be more discouraging than to learn a new investment skill, put it work, and then find out that you have fallen for some scam that more experienced traders would have spotted in an instance.  The popularity of forex trading in the past five years has been enormous due to easy access to trading platforms on the Internet and to its overall flexibility.  The downside of such popularity, however, is that the criminal element in our society, eager to pounce on the unsuspecting, has jumped into the fray right along with you and your uncle Harry.  Law enforcement and forex brokers have policed the area quite a bit over time, but antics from offshore con artists are difficult to eliminate in any field of endeavor where money is involved.

So what is a prudent forex trader to do to protect himself from these thieves?  The first thing to realize is that you and you alone represent your immediate and last line of defense.  Your awareness of the potential for fraud is a good second step.  You must be highly skeptical of any attempt to sell you on anything, because all scams start and end with the “sell”.  Train your mind to be wary, get your greed in check, and let caution be your guide.

Beyond yourself, look at how you “connect” to the market.  Make sure your PC has no marketing “bots” that have been downloaded to convince you to buy or to send back information to someone who will.  Give your bank a “stress test” by reviewing their public financial reports.  Don’t use an offshore bank unless you like to play with fire.  Next is your broker.  Again, he should be of high integrity, onshore, well capitalized, respected by his peers, and well recommended by review sites, local business bureaus or government agencies, and by other traders whose opinions you trust.  Lastly on connectivity, are you comfortable with your trading forex platform?  Are trades transacted quickly?  Do the spreads vary over time?  Do backlogs or downtime occur frequently?  These types of problems may be broker related or dependent on how your broker is connected to the market.  If they are not up to standard, shop around for a better service provider.

Con artists generally update their devious schemes every year, their way of improving the probability that you will fall for their various designs.  Scams come in all shapes and colors, but the general appearance will resemble one of these three genres:

• High Yield Investment Program:  Be wary of any low risk/high reward promotion by anyone.  Forex trading involves high risk and requires specialized training before anyone should attempt to trade the first dollar.   A likely forex scam scenario may also tout high levels of leverage as the only path to success.  As always, If it sounds too good to be true, it is;
• Unsolicited Approaches:  Be extremely cautious of emails, phone calls, or mailers bearing tips or products with the “secret”.  Rely on your best judgment when evaluating these come-ons;
• High Pressure Sales Efforts:  Be skeptical of any salesman’s pitch that has a sense of urgency connected to it.  Hold onto your wallet, and walk the other way when he asks for money, because he surely will at some point.

Investment fraud artists can come at you when you least expect it.  For this one reason alone you always need to be ever vigilant, skeptical and aware.  Put your greed on the back burner, and apply caution when appropriate.

Daniel Frishberg and the Importance of Money Management – Irony in Deception!

A day or so ago a scammed investor lamenting his/her plight said that the word is Dan Frishberg is growing tired of the negative publicity he’s receiving on the web.  It has become worry some that the choices that he’s made are producing consequences that tarnish his reputation.

My immediate response is “Every choice has a consequence!”  In fact, I shared that if Dan had taken a different path early on most of what he’s experiencing today would be quite different.  For example – had Dan shared with his followers that he’d made mistakes in his vision of BizRadio, that BizRadio was in financial trouble and that he would open the revenue source from his RIA to provide a steady stream of repayment to those who were defrauded or scammed in one way or another, I suspect the outcome would have been much more positive.

Alas…Dan “The Money Man” did not.  Rather he is desperately trying to continue to put out the message that he is “The Money Man” through a series of NEW blogs touting his expertise.  There is IRONY here.  I call it the IRONY of DECEPTION and the likely outcome is that Dan is digging the hole deeper for his ultimate demise.

I am not going to link my blog to his – as that has the effect of drawing attention to his work.  I will, however, share part of his blog comments and, after some comments, ask YOU for yours.  Perhaps I am off base and I’m man enough to accept that – so if your comments reflect a different opinion of Dan and his choices – PLEASE SHARE.

DAN STATES THE FOLLOWING:

Today I’ll share with you two general systems of money management that will help you how complex you want to take your strategy for managing the money even if you do not all. Good management of working capital is necessary to reach a compromise between liquidity and profitability. It is widely believed that if you can not manage your life, you can not begin to manage your money.

Let me repeat his comment: “It is widely believed that if you can not manage your life, you can not begin to manage your money.”  Time after time from numerous emails and phone calls, I have been told that Dan was challenged in managing his life – at least his financial life.  It is not for me to judge, but one might easily come to the conclusion that money management is an issue for Dan considering that investors money funded BizRadio and BizRadio was the “loss leader” (Dan’s comments not mine) that propelled his RIA and earned him personally a reported $700,000 per quarter.  Financial success on Dan’s part or the trappings of a successful scam – using other people’s money to accomplish his personal objective leaving other people victims?

Dan further states:  “You must understand that leveraging your money with good management can turn a relatively low investment business situation / in a dynamic Moneymaker. Wise money management is essential for a balanced and happy life. gives practical advice for managing money among others for gambling and trading of the shares. money management can mean acquiring more control over expenditure and revenue, both personal and business perspective.”

Dan seemed to practice what he preaches here.  Sure enough he turned a low investment into a good business situation (for himself) at least for a time.  Where did the BizRadio money come from?  I suspect that investors (victims) could now come out of the woodwork and share their stories of how they were suckered into believing that Dan “The Money Man” was wise and all knowing – touting the vision and ILLUSION that BizRadio was a good investment for them.  Reality Check:  BizRadio was only good for Dan.

Financial stress resulting from low skills of money management may affect our ability to make good decisions, harm our relations on the physical and mental health, and ultimately to function well in life. Indeed, deficient money management is one of the main causes of bankruptcy among unseasoned traders. Management of financial assets is an effective way to manage financial assets, one that may take place in various forms. Management services for financial assets generally provide include but not limited to, Control services, credit cards, debit cards, margin loans, automatic transfers from one account to another, and same brokerage services.

LET ME ASK A QUESTION:  How many people in the Houston – Dallas markets are suffering (I mean truly suffering) financial stress due to the representations of Al Kaleta and Daniel Frishberg?  Both are shameful representatives of the financial community.  Dan, through his actions, has caused stress to both physical and mental health of many who have lost their life savings, believing that Dan Frishberg lived up to his self proclaimed status as “The Money Man.”  Now, Dan is desperately trying to save his reputation.  What Dan fails to realize is that his actions destroyed his reputation.  Dan is effectively nothing more than a con man who hasn’t yet realized that feeding his ego off of other people’s money is costing him everything.

The sad part is this could have been different.  But then the same could be said for Bernie Madoff.  Both Dan Frishberg and Bernie Maddoff have two things in common: (1) they are both intelligent and (2) they are both crooks.  The only difference – Bernie is in prison.  Dan hasn’t been charged.  YET…

YOUR COMMENTS ARE WELCOME.

Tylenol abuse – finding meaning in the last 40 days! Don Smith, Jr. quips and touches a heart!

I had just turned around from the area in Best Buy where the big screen TV’s were – typically the back area near the restrooms, when I looked up and saw a familiar face.

Now have you ever innocently said something and had a response that practically knocked you off your feet?  I mean it wobbles you so that the next statement is hard to find?

As I looked up and saw my old acquaintance and friend, Don Smith I was surprised.  For some reason lately I seem to be running into folks who have a strong connection to my past.  Friends, roommates from college and others seem to be appearing in my life and in each case there is a message that I’m receiving.

I startled Don, I think, just as much as he startled me.  Of course, since he saw me last I’ve lost some hair and what I have is certainly more gray.

“Don, how are you doing?”  Before he could reply I said you have a nice tan going on.  His skin was deeply tanned and, for his age, somewhat aged – looking as if he’d been in the sun a bit too long.

“That’s no tan.” he replied and then his words stunned me!

“I have 40 days to live unless I get a liver transplant!”

I, who rarely am at a loss for words, was speechless.  Here I was thinking I was paying him a compliment on his tan only to find out that his skin looked as it did because he was dying.  Talking about being wobbled…I was wobbled and more.

I gathered from his next comments that he was growing accustomed to wobbling people like me who seem to be surfacing in his life – either to encourage and pray for him or tell him goodbye.  His eyes seemed to be moist as he shared with me his story from where he has been to where he was.  It seems that almost a decade ago this vibrant young man in his 30′s had his hips (both I think) replaced.  Why?  Honestly I don’t recall…but I do recall that this significant surgery was certainly unexpected for a man so young.

“Chuck…I destroyed my liver!  It’s gone and if I don’t get a new one I’ll be gone in 40 days.”

Don went on to share with me that after surgery he was given pain medication to help take the edge off the pain he experienced as he attempted to recover from hip surgery.  I can’t speak for Don…but I do understand that men (in general) are babys when it comes to pain (at least I am) and as Don continued his story he shared that for a long time he was dependent on prescription pain medication.

After some time, Don, at the insistence of his physicians, switched from the high powered prescription meds to Tylenol (extra strength I think he shared).  Don said rather mater of factly, I’d take 10 or more a day to avoid feeling the pain and “Chuck I did that for years.”

Then he looked at me with his carolina blue eyes and said, “I didn’t know what I was doing and destroyed my liver in my attempts to feel no pain.”

We must have talked for a good 20 minutes standing there in Best Buy as if nothing in the world mattered other than our mutual conversation.  He shared with me the humor that he was bringing to the end of the life he was facing knowing that he would either find new life with a new organ or find life beyond – outside of the body that was worn out.

We talked about his two children, both in college, and the financial position that all of this had put he and his family in.  My heart ached.  Behind the conversation today was a deep family connection that like many relationships was hidden from view.  Many years ago, Don’s father – Don Smith, Sr. helped me financially at a time when I needed it the most.  Now his son was facing the end of life and no amount of money could change that – yet I felt a deep longing and desire to help him now as he reached out to help me in the past.

As we concluded our time together, Don (in his typical fashion) said, well if timing means anything, best to need a liver when it’s vacation season and travel is abundant.  We both laughed and yet, at the same time, knew that someone would have to lose their life in order to save his.  Either way, the outcome is dramatic.

Then Don said something profound.  “The worst thing that could happen – Chuck – would be to find out that when my life in this body is over – to find out that I did nothing to help or bring meaning to others.  Perhaps my humor helps others or perhaps my life is a testimony of why one should not abuse Tylenol.  What I want to know is that this life has been lived for something.”

As we hugged I knew that both he and his family had lived lives that were a testimony to their beliefs.  They made a difference in other peoples lives.  They certainly did in mine and for that I am truly thankful.

Now…my prayers are that Don, Jr. and I will be talking in 80 days and perhaps his “tan” will disappear as he continues to bring meaning to others he touches!

God bless you Don!