Articles Posted in Fraud

In order to be convicted of a crime in Florida, a judge or jury has to find beyond a reasonable doubt that you committed the specific offense with which you have been charged. That means the burden is on prosecutors to prove each individual element of an offense, including specific intent in many cases. Florida’s First District Court of appeal recently explained that shoplifting, for example, involves a different type of intent than fraud. The decision is important because a person can’t be convicted of a crime for which he or she hasn’t been charged, unless it’s considered a “lesser included offense.”

metal shopping cartDefendant was charged with participating in a scheme to defraud, stemming from a series of alleged Wal-Mart shoplifting incidents in Live Oak. Prosecutors alleged that on various occasions Defendant entered the store, loaded items into a shopping cart, and then ran out of the store with those items without paying. Defendant argued that he should be acquitted of the charge because prosecutors didn’t show that he acted with the intent to defraud or that he made any misrepresentations as part of the alleged thefts. Prosecutors countered that Defendant misrepresented that he was “a lawful paying customer” every time he left the store without paying for the items.

The trial judge denied Defendant’s motion for acquittal. He was eventually convicted and sentenced to three years in prison and another two years of probation. Defendant later appealed the conviction.

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Florida prosecutors have the burden in many white collar and other criminal cases to prove that the person charged with crime actually intended to commit it. Getting inside a person’s head at the time of the offense is easier said than done, so prosecutors often rely on evidence about the person’s words and actions to prove that he or she had criminal intent. A recent real estate fraud case out of the U.S. Court of Appeals for the Eleventh Circuit is a good example of how that works.

ScalesThe defendant was charged with various fraud crimes related to his operation of PIM, a Florida company that offered clients the opportunity to invest in property on the Bahamas island of Rum Cay. The company solicited clients to buy the property directly or loan money to the PIM with Rum Cay land as a security. They targeted people who had recently lost money in stock and precious metals markets by offering them a credit for those stocks and precious metals that was more than the market value, according to the court. They also managed to get pro football legend Joe Montana to sign on as a pitch man in return for a parcel of Rum Cay property.

“PIM, in fact, was a scam,” the Eleventh Circuit said. The Rum Cay land in which it said it was selling interests was actually owned by a Bahamian company “owned by a convicted felon and embroiled in litigation over title to the land.” PIM didn’t tell its investors about that piece of the puzzle, however, until after they transferred money. Investors never received title to the property, the court said, but the defendant gave exorbitant commissions to PIM salespersons and spent millions of dollars for his own benefits. He was eventually convicted and sentenced to more than 12 years in prison. He was also ordered to pay more than $8 million in restitution.

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Credit Cards

As more commerce is conducted electronically, many States have passed laws specifically targeting credit card fraud. Florida is no exception. Local authorities are aggressively pursuing a variety of Florida credit fraud schemes, including mortgage fraud, health care fraud, and identity theft.

Before the beginning of the college football season, several star University of Florida players were suspended as the university investigated alleged misconduct. The status of the investigation changed this week after news outlets reported that nine members of the Gators team face at least 62 potential felony charges of credit card fraud.

The sworn complaint alleged that the players used borrowed or stolen credit cards in order to purchase electronics, some which were later resold on a secondary market. The alleged scheme involved the players adding money to their bookstore debit accounts and then using the extra money to make additional purchases. Moreover, the sworn complaint alleged that a stolen credit card was used to pay for rent in a Gainesville apartment complex.

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