Social Security fraud is nothing to play with…just ask Samuel J. Delsignore!

July 30, 2011

A resident of New Salem, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of Social Security fraud and false statements.

The two-count indictment, returned on July 19, named Samuel J. Delsignore, 50, as the sole defendant.

According to the indictment, on Aug. 14, 2009, during a Social Security Administration redetermination of benefits eligibility, Delsignore concealed assets consisting of an interest in his father’s estate, bank accounts, two tri-axle trucks and a classic car.  It is also alleged that, during an Oct. 14, 2010, interview with a Special Agent, Delsignore falsely represented the $21,000 sales price of his 1967 Pontiac GTO as being $1,500.

The law provides for a maximum total sentence (at each count) of five years in prison, a fine of $250,000, three years of supervised release and a $100 special assessment.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

YOUR COMMENTS ARE WELCOME!


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

May 19, 2008

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…


Fraud and Tax Evasion – Carol Irene Estep Sentenced to Prison! White Collar Crime in Virginia

March 21, 2008

Seven plus years in federal prison is no fun! Yet, for her fraudulent activities that is exactly what Carol Estep, age 54, of Hurley, Virginia got. “This defendant made one false statement after another, all in the name of greed,” U.S. Attorney John Brownlee said today. “In order to line her own pockets, Ms. Estep stole money from disabled individuals who were truly in need of financial assistance.”

As a white collar crime speaker, I often state that Every choice has a consequence. In the case of Estep her choices have significant consequences not only to herself but others she was associated with. Not only was a fraud committed by Estep – her son, Timothy Carl Ling, age 30, and Herman Scott Ling, age 67, her ex-husband were involved in the several frauds committed. Herman Scott Ling was sentenced to five years probation.

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The charges to which Timothy Carl Ling, Estep, and Herman Scott Ling pleaded guilty to centered around numerous fraudulent schemes. These schemes included a mail fraud scheme in which the family defrauded the Virginia Consumer Services Fund and received money to which they were not entitled by falsely claiming that Timothy Carl Ling was a quadriplegic. The Virginia Consumer Services Fund and Clinch Independent Living Services, Inc., which provides funding and services to disabled individuals so that they may live a more independent life, purchased a specially equipped van and built ramps at Estep’s home based upon the pair’s fraudulent representations that Timothy Carl Ling was a quadriplegic. According to testimony presented at the sentencing hearing, the agencies spent more than 50 staff hours and more than $14,000.00 assisting Timothy Carl Ling and Estep, money and time that could have been used to help the 2,000 other individuals with disabilities serviced in Buchanan, Dickenson, Russell, and Tazewell Counties by these agencies.

Timothy Carl Ling had previously pleaded guilty to Social Security fraud in which he admitted that he was fabricating his quadriplegia in order to avoid being sent to prison for probation violations pending in Buchanan County, Virginia. I must admit in writing about many white collar crime issues, I haven’t run across someone that creative. Faking a medical condition to avoid prison is gutsy and, no doubt, will result in significant prison time when sentencing arises.

Additionally, Timothy Carl Ling and Estep perpetrated a credit card fraud scheme between the summer of 2005 and October 2006 in which they defrauded five separate credit card companies and incurred a loss to these companies and merchants of $344,465.09. The money was used for shopping sprees, vacations, casino gambling, and to purchase property in both Pikeville, Kentucky, and Hurley, Virginia.

Estep and Timothy Carl Ling were in the process of building two houses in Pikeville, Kentucky. In the course of that scheme, Timothy Carl Ling and Estep used the social security number and date of birth of another family member in order to attempt to hide their criminal conduct and falsely implicate this individual.

What a massive fraud with far reaching tentacles. But, it doesn’t start with what written above – using some of the proceeds of the credit card fraud, Timothy Carl Ling and Estep, both recipients of Social Security disability benefits, established a recycling business in Hurley, Virginia, known as “The Yard,” which posted gross profits of $210,641.93, during 2005 and 2006. The profits from “The Yard” were divided between Timothy Carl Ling, Estep, and others. None of these individuals reported their income to the Internal Revenue Service or the Social Security Administration Office and Timothy Carl Ling, Estep, and Herman Ling actively tried to hide this income from the Internal Revenue Service by engaging in money laundering transactions.

Wow…social security fraud, tax fraud, wire fraud, – this would be a good movie if it weren’t so sad. From personal experience, I speak to group about the Truth about Consequences. In most cases, one can trace back white collar crime to three key components: NEED – OPPORTUNITY – AND RATIONALIZATION.

If anyone is familiar with Estep and the others, and have some insight into the fraud and crimes…feel free to comment. It would be interesting to understand how and why something like this was done.


Mortgage Banker Rose Shaw Sentenced to Prison for Fraud – Comments by Ethics Speaker Chuck Gallagher

January 17, 2008

As the housing market was booming in late 2005, Rose A. Shaw applied for a loan to purchase real estate in Missouri. The problem was – the date she submitted on the application for the loan was – well false – to say the least.

She submitted false information on the application:

  • She had false income records for 2005;
  • False financial statements for 2004;
  • A false federal income tax return for 2004;
  • She created a false bank account to inflate her purported monthly income

Based on the false information, she was granted a loan. But beyond her fraudulent actions above, Shaw also received monthly social security disability checks from January 1985 through March 2006. She claimed that she was mentally retarded and suffered from schizophrenia.

I think she was retarded, but not in a medical sense. Rather, she made choices that would eventually have a consequence. Operating as Rose Shaw Enterprises, LLC and Shaw Brokerage Real Estate Investment Firm, LLC, Shaw made more dumb choices that would have an ultimately negative effect than most of us could think of.

To top off her choices which would take her to prison, Shaw forged the signature of the Chief United States Bankruptcy Judge Barry Schermer’s signature.

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So, forgery, social security fraud, and mortgage fraud combined earned Rose Shaw a place in Federal prison for 33 months. (The sentence was amazingly low considering the combination of the crimes). In addition to the prison sentence, Shaw was ordered to make mandatory restitution in an amount in excess of $225,000.

What are your thoughts on the sentence for Rose Shaw?

Business Ethics Speaker, Chuck Gallagher (See Demo Video on YouTube) signing off.