Georgia Criminal Defense Lawyer Blog

On Wednesday, federal and state law enforcement agents took out 80 arrest warrants for individuals across Georgia accused of fraudulently claiming federal housing funds.

Police are calling the sweep Operation Clean House.

The 80 individuals will face state charges including theft by taking and making a false writing. Federal charges are also possible. In total, arrest warrants were taken out for individuals in 31 Georgia counties including Cobb, Clayton, Fulton, Richmond, Dougherty and DeKalb.

In Georgia, the Department of Community Affairs disperses federal funding for housing in nearly 150 counties. At the federal level, the Department of Housing and Urban Development (HUD) distributes Section 8 funds. These agencies are hopeful that this latest sweep will crack down on future housing fraud.

A spokesman with Georgia’s Department of Community Affairs stated that most of the individuals joined the housing programs legally but then lied in some way to maintain their benefits. It is believed that most of the alleged fraud occurred in the last one to two years.

Under Georgia law, theft by taking in excess of $500 is a felony, and an individual can be sentenced to serve one to ten years in prison. The crime of making a false writing is also a felony and carries a one to five year sentence. Federal sentences can be much higher, depending on the amount of loss allegedly involved.

On Friday, federal authorities indicted 29 people in Baton Rouge, Louisiana suspected of defrauding Medicare out of $32 million. Four of the individuals are physicians.

The Baton Rouge Advocate has the story.

The federal government set up the nation’s eighth Medicare Strike Force in Baton Rouge in February. The 29 indictments announced on Friday constitute the force’s first wave of prosecutions and is also the largest crack down on Medicare fraud in the Middle District of Louisiana. Agents targeted patient recruiters, doctors, medical professionals and employees of healthcare businesses.

Two of the individuals, Dr. Dahlia Kirkpatrick of LaPlace and Emmanuel Komandu of Prairieville, allegedly defrauded Medicare out of $775,000. Specifically, the government alleges that Kirkpatrick gave prescriptions to Alpha Medical Solutions Inc., which is owned by Komandu, that lacked medical necessity.

In addition to the 29 indictments in Baton Rouge, federal agents arrested 63 individuals in Brooklyn, Miami, Houston and Detroit. Government officials estimate that the total dollar value of the fraud is approximately $219 million.

One of our federal criminal attorneys was recently retained in another federal case in Baton Rouge, involving allegations of public corruption. It appears that the U.S. Attorney's office for the Middle District of Louisiana has been very busy lately. This district seems to prosecute more medicare fraud cases than most other districts, even districts with much larger populations.

Law enforcement agents in Dougherty County have arrested three owners of the Stop-N-Shop gas station in Albany, Georgia. The Dougherty County District Attorney’s Office has announced that the owners have been indicted on charges of racketeering and money laundering.

WALB has the story.

Authorities arrested George Bagain and Melanie Bagain at their Albany home while Ayaz Ahmed was arrested inside the Stop-N-Shop. Police also searched two Lee County homes as well as the convenience store and seized boxes of documents along with several computers.

Police believe that the three individuals operated illegal gambling machines inside the store, and that they made more than $100,000 from the illegal machines which they then laundered. The store had been previously raided in April by the Sheriff’s Department which confiscated the gambling machines.

According to the indictment, the three laundered the illegal proceeds through the Sahi Corporation and used the proceeds to buy homes, cars and land in Lee, Dougherty, Henry and Calhoun County. The D.A., Gregory Edwards, suggested that some proceeds may have gone to crime organizations abroad.

The state has also filed a civil suit to seize bank accounts, properties, and vehicles that were allegedly purchased with the tainted funds.

If convicted under Georgia’s racketeering statute, commonly referred to as RICO, the three individuals would face five to 20 years in prison.

Georgia law enforcement agents conducted three raids in Dougherty and Lee Counties on Friday including a convenient store in Albany, Georgia. The raids were conducted as part of an ongoing money laundering and racketeering investigation involving gambling machines.

WALB has the story.

One of the raids took place at the Stop and Shop located at 2201 South Liberty Expressway in Albany. During the raid, agents from the Dougherty County District Attorney’s Office seized numerous documents. Authorities say they are looking for evidence of money laundering.

The raids come on the heels of an investigation involving the illegal use of gambling machines. District Attorney Greg Edwards believes that money is being illegally transferred out of the state, and he further implied that the money may be used to fund terrorism.

If charges are filed, the parties involved will likely be charged under Georgia’s RICO statute for racketeering. Under Georgia law, a person convicted under the RICO statute would face a five to 20 year prison sentence. Our Georgia criminal attorneys have successfully represented numerous clients charged with RICO violations. In our experience, law enforcement will typically arrest and charge anyone who is remotely connected to any alleged RICO activity. This often results in innocent people being charged and prosecuted alongside the people who are directly responsible. In many cases, however, a good criminal defense attorney can get the charges dismissed or reduced by showing prosecutors that his client had no knowledge of any criminal activity.

Federal authorities in Atlanta, Georgia have indicted four individuals for conspiring to release Freon into the atmosphere. Prosecutors say the four stole copper from commercial air conditioners in Franklin, Hall, Hart and Stephens Counties which caused the dangerous gas to be released. Freon is a type of CFC and is known to deplete the ozone.

The Atlanta Journal Constitution has the story.

Prosecutors believe that a total of 14 businesses were targeted and that copper was taken from approximately 35 air conditioning units. The stolen copper was then allegedly sold to scrap metal businesses. According to authorities, Freon is released when the copper coils of an air conditioning unit are severed.

The four individuals who have been indicted include Daniel Arnot of Estonollee, Sabrina Westbrooks of Lavonia, Corey Beard of Eastonolle and Justin Joyner of Toccoa. Each defendant has been indicted on 13 counts. If convicted, they could face 5 years in prison and a $250,000 fine on each count.

This is a unique approach to prosecuting what would otherwise be basic theft cases. While there may be some environmental impact to these thefts, it is clearly not the motivating factor in the offense.

Our criminal defense attorneys have successfully represented people charged with environmental crimes in Georgia. We have noticed that environmental cases seem to be a growing area of focus in Atlanta and other federal districts in Georgia.

A Macon insurance agent was recently indicted for allegedly collecting the premiums on insurance policies that he had previously sold. The agent is suspected of taking more than $150,000 from various Macon businesses.

The Macon Telegraph has the story.

Broadus W. Marshall Jr., of Marshall Insurance Co., was arrested in December after Goodwill Industries of Middle Georgia discovered the alleged fraud. Authorities believe that Marshall forwarded Goodwill’s premiums to Philadelphia Insurance Co. until December 2008. Marshall then allegedly began to pocket Goodwill’s premiums instead of sending them to Philadelphia. As a result, Goodwill’s policy was canceled. Police believe that Marshall took about $150,000 before Goodwill found out that its policy had been canceled.

Marshall was also indicted for defrauding several other Macon businesses. Destiny Driven Deliverance Church, River Edge Behavioral Health Center and A Little Extra Inc. allegedly had $15,500 taken from them. In addition, the indictment states that Mashall took $1,000 from Pierce and Parker, Inc., a St. Simons business. Two residential customers, Anna and George Hanse, also had $1,000 taken from them according to the indictment.

Marshall has stated that the money in dispute is simply the result of accounting errors and misunderstandings. River Edge Behavioral Center also says that they have no evidence that Marshall did anything wrong.

Marshall has been indicted on seven counts of insurance fraud. If convicted, he would face two to ten years in prison for each count.

The Georgia Insurance Commissioner’s Office sent law enforcement agents to search two Bibb County homes last week. The searches were part of an insurance fraud investigation that was launched after insurance companies complained that two Macon women tried to fraudulently collect $400,000.

The Macon Telegraph has the story.

The two women, Sharon Marberry and her daughter-in-law Jessica Marberry, allegedly falsified pharmacy bills in order to receive reimbursements. Specifically, police claim that the women used pharmacy receipts from CVS to file for reimbursements from Aetna and Golden Rule. Police have also alleged that the women used fictitious names to acquire the insurance policies.

Aetna and Golden Rule alerted authorities after paying out approximately $130,000. In total, the women are accused of submitting claims in the amount of around $400,000. Authorities believe that the fraud lasted for less than a year, but police also say that the total extent of the alleged fraud is unknown.

The women’s two homes were searched last Thursday for computer files, receipts, bank records or any other documents which may point towards fraud.

Under Georgia law, a person who is convicted of filing a fraudulent insurance claim faces two to ten years in prison and a $10,000 fine. A person accused of this crime may face additional charges as well.

Our firm has successfully handled many insurance fraud cases. In our experience, people accused of insurance fraud often have no knowledge of any illegal activity or simply did not intend to commit any fraud. A good criminal defense attorney will work with prosecutors and law enforcement to show that his or her client never intended any wrongdoing. A good defense attorney will also seek to suppress any evidence that police confiscated during the search of a home or office. In many cases, these early efforts will result in a dismissal or reduced charge well before trial.

Federal authorities in Atlanta, Georgia have indicted two former officers of Integrity Bank for bank fraud, insider trading, bribery and conspiracy. A Florida real estate developer has also been indicted.

The Atlanta Journal Constitution has the story.

Integrity Bank was formed in 2000, but state regulators and the FDIC closed the Alpharetta bank in 2008. Federal prosecutors say that two of the bank’s officers, Joseph Todd Foster and Douglas Ballard, gave $80 million to a developer and then sold their stock in Integrity Bank before the failed loans surfaced. Prosecutors also allege that the two officers made large commissions and accepted payoffs from the developer. Ballard was the bank’s executive vice president and Foster was a vice president.

The real estate developer, Guy Mitchell of Florida, allegedly used the money for his own personal use including buying a private island.

The indictments come on the heels of a federal investigation which is trying to determine why 37 north Georgia banks have failed over the past two years.

Prosecutors and law enforcement believe that many of the closures were largely due to fraud and not simply a downturn in the economy.

Ballard, Foster and Mitchell will appear in federal court on Friday afternoon for their initial appearance. The crimes with which the men have been charged carry severe penalties. Bank fraud alone carries a maximum 30 year prison sentence and a possible $1,000,000 fine. Similar sentences may be imposed for bribery and securities fraud as well.

Gordon County Sheriff’s Deputies raided three homes early Friday morning after a nine month racketeering investigation. Police say those arrested during the raids received stolen property in exchange for methamphetamine on numerous occasions.

The Rome News-Tribune has the story.

The raids were spearheaded by Gordon County’s Major Crimes Unit and occurred around 4 a.m. on Friday morning. According to detectives, the individuals who were targeted by police received stolen property including firearms and laptop computers. In exchange for the stolen property, the individuals would then distribute methamphetamine.

Under Georgia law, individuals convicted of distributing between 28 and 200 grams of methamphetamine face a minimum of ten years in prison. Georgia also makes the manufacturing of methamphetamine illegal, and a person convicted of manufacturing under 200 grams faces a minimum sentence of ten years. Furthermore, the crime of racketeering, also known as a RICO violation, carries a five to 20 year sentence.

Unfortunately, in some racketeering cases, law enforcement will arrest and prosecute anyone they believe to be connected to the illegal activity. In our experience, this often means that innocent people are prosecuted alongside those who planned and carried out the illegal activity. There is often a risk of casting too wide a net in RICO cases, due to the type of crimes alleged in RICO indictments and the breadth of the statute.

A Rome, Georgia couple has been indicted in federal court for using approximately $30 million of Medicare and Medicaid funds for their own personal use. The couple managed two nursing homes, one in Rome and one in Brunswick, from 2004 to 2007 which cared for around 300 residents.

The Atlanta Journal Constitution has the story.

The indictment alleges that the couple, George D. Houser and Rhonda Washington Houser, billed Medicare and Medicaid for the needs of their 300 patients but then used the funds to buy real-estate and luxury cars for themselves. The indictment goes on to allege that the couple failed to provide adequate care for their patients. Specifically, prosecutors allege that they did not repair washing machines, dryers and water heaters. In addition to the fraud charges, George Houser has also been charged with failing to pay payroll taxes.

Our criminal defense attorneys have successfully handled numerous federal cases involving fraud allegations. Federal fraud cases are often complex and document intensive which require great attention to detail. In many of these cases, the most powerful defense is good faith. Good faith exists when a person truly believes that he or she was in compliance with the law. Good faith can be shown in a variety of ways including consulting with an attorney to determine if a practice is acceptable, conforming to industry standards, or taking prompt action to correct a problem.

Three Athens-Clarke County employees have been charged for allegedly allowing probationers to buy their way out of community service. Athens authorities are still unsure as to how many more employees may be involved and police expect more arrests to come.

The Athens Banner-Herald has the story.

The three individuals who have been charged worked for the county’s Leisure Services department. The department supervises people who are on probation for crimes such as DUI and other misdemeanors. Late last year probation officers began seeing irregularities in documents which were approved by Leisure Services employees. Athens police were then called to investigate which ultimately led to the filing of charges.

Two of the employees, Tracey Leon Woods and Charles Edward Robinson, have been arrested for bribery and making false statements and writings. The third, Clay Brown, is expected to be arrested on the charge of making false statements and writings. Joseph Vernon Siskey, a University of Georgia student, has also been charged for allegedly bringing probationers to meet with Woods.

In addition to county employees, probationers may face charges if they are suspected of being involved in the fraud. Furthermore, individuals still on probation could potentially have their probation revoked. Currently, police believe that the bribery and falsifying of records occurred between October of 2008 and March of 2009.

Under Georgia law, a person convicted of bribery can face one to 20 years in prison and a $5,000 fine. An individual convicted of making a false writing or statement could receive a one to five year sentence and a $1,000 fine.

Our criminal defense lawyers have been successfully representing prominent public officials as well as private citizens accused of bribery and making false writings for years. In many bribery investigations, police will typically cast a wide net which often traps individuals who either had no knowledge of a crime or were unaware that they were involved in a criminal scheme. In such cases, we can often negotiate with prosecutors to achieve dismissed or reduced charges well before trial.

Georgia’s governor and members of the Georgia Senate have introduced legislation that would create a special unit designed to combat mortgage fraud.

The Atlanta Journal Constitution has the story.

Currently, Georgia ranks fourth in the nation for mortgage fraud. It is estimated that mortgage fraud referrals have cost Georgia around $145 million from 2005 to 2008. The special law enforcement unit that has been proposed would investigate crimes involving mortgage fraud throughout the state. Legislators hope that the unit will act as a deterrent and result in more prosecutions. If the unit is created, it will draw resources from the Georgia Bureau of Investigation as well as the Department of Banking and Finance.

Under Georgia’s Residential Mortgage Fraud Act, a person convicted of mortgage fraud may receive a one to ten year prison sentence as well as a $5,000 fine. If a person engages in a pattern of mortgage fraud, he or she could face a three to 20 year sentence and a $100,000 fine.

Our criminal defense attorneys have successfully represented numerous clients charged with mortgage fraud, including brokers, attorneys, investors, agents, appraisers and "straw-buyers.". A key element of mortgage fraud is knowledge. In other words, the state must be able to prove that a person knowingly engaged in the alleged fraud. A good criminal defense attorney will intervene early to work with prosecutors and law enforcement to show that his client had no knowledge of any alleged fraud or illegal activities. This early intervention can often lead to dismissed or reduced charges well before trial. Our lawyers have been able to get several mortgage fraud charges dismissed or successful resolved well before an indictment or trial.

Savannah-Chatham Metro Police arrested four people this week on charges of racketeering and forgery for allegedly spending counterfeit money. Authorities say the four spent thousands of dollars in phony bills.

WTOC has the story.

The four allegedly spent around $2,000 of counterfeit money at the Target on East Victory Drive. Police believe they then returned around $800 worth of merchandise to the Savannah Mall Target. So far all of the bills were in $20 and $50 denominations.

According to police, a Target loss prevention officer followed one of the suspect’s cars and wrote down a tag number. That information led to the arrest of Necshelle Smart, Shauawquinette Smart, Tyler Murphy and Monica Miller. The four are believed to be related.

All of the arrested individuals were given a bond except Necshelle who apparently has a prior forgery conviction. They are expected to appear in court on February 8.

Under Georgia law, forgery can lead to a 10 year sentence while racketeering can result in a five to 20 year sentence.

Our criminal defense attorneys have successfully handled numerous racketeering and forgery charges. In some counterfeit cases, individuals are recorded on videotape exchanging cash for merchandise. In other cases, a tip will point police to a home where a counterfeit operation is being conducted. Whatever the case may be, a good criminal defense attorney will explore every step of a police investigation to determine if there was probable cause to arrest an individual or search a home. If police conducted an illegal search or seizure, the evidence used against that person will generally be suppressed.

In this case, as in any other criminal case, all of the individuals charged are presumed innocent. There will need to be proof beyond a reasonable doubt to convict any of them at trial.

An Atlanta, Georgia doctor was arraigned in federal court on Friday for allegedly billing false claims. He has been charged with committing wire fraud, mail fraud, health care fraud and obstruction of justice. If convicted, the doctor faces a possible 20 year prison sentence.

The Atlanta Journal Constitution has the story.

Prosecutors say that Dr. Rajashakher P. Reddy, 39, committed the fraud through his company, RSI, Inc., by submitting thousands of patient reports without ever reviewing x-rays and other similar film. Reddy’s company supplied radiologist services to hospitals throughout the southeast that do not provide full-time radiology services.

Mail fraud and wire fraud both carry a possible sentence of up to 20 years. Each offense also carries with it a fine of up to $250,000.

Our criminal defense attorneys have successfully represented several health care professionals who have been charged with crimes such as wire fraud and mail fraud. While there are many ways to defend against wire fraud charges and protect a doctor’s good name, one of the strongest defenses is good faith. It is important to remember that the government carries the burden of showing that the defendant knowingly participated in the fraud. If a defendant can show that he believed his actions were made in good faith, and that there was no intent to commit any fraud or other unlawful acts, there can generally be no conviction. Good faith can be shown through industry standards, cooperating with law enforcement, promptly acting to fix complaints and consulting with an attorney.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

On Tuesday, a federal grand jury in Atlanta indicted seven members of an alleged Eastern European organized crime ring on charges of wire fraud, computer fraud and identity theft. The alleged members come from Estonia, Russia and Moldova. Prosecutors say the group stole $9.4 million from the Royal Bank of Scotland Group’s payroll debit systems.

The Atlanta Journal Constitution has the story.

Authorities have called it the most sophisticated computer fraud attack ever. It is believed that the international hacking ring responsible for the attack compromised the data encryption systems of the Royal Bank of Scotland (RBS) WorldPay’s computers in Atlanta. Once compromised, hackers were able to obtain information which connected to payroll debit cards used by corporations to pay their employees by means of ATMs.

Prosecutors believe the hackers raised the account limit and gave “cashers” over 40 fake payroll debit cards. In 12 hours, the cashers were able to withdraw $9.4 million from more than 2,000 ATMs in nearly 300 cities across the globe. The cashers kept a share of the profits and sent the rest to various Eastern Europeans. After the scam occurred, authorities believe that the hackers attempted to cover their tracks by destroying data on the compromised network.

Those charged with identity theft, conspiracy to commit computer fraud, computer fraud, conspiracy to commit wire fraud and wire fraud include Sergei Tsurikov of Tallinn, Estonia; Viktor Pleshchuk of St. Petersburg, Russia; and Oleg Covelin of Chisinau, Moldova. Ronald Tsoi, Igor Grudijev, Mihhail Jevgenov and Evelin Tsoi of Tallinn, Estonia have all been charged with access device fraud. The men range in age from 20 to 33.

Among the most serious of these crimes is wire fraud which typically carries a sentence of up to 20 years and a $250,000 fine for each offense. If the fraud is committed against a financial institution, a conviction can result in a 30 year prison sentence and a possible $1,000,000 fine.

Our criminal defense attorneys have successfully defended numerous clients charged in conspiracies involving wire and computer fraud. We have also helped several international clients who have been involved in multinational investigations. In our experience, innocent people with little to no knowledge of any wrongdoings are often swept into conspiracies and treated just as harshly as those who perpetrated the fraudulent acts. In international conspiracy cases, a good criminal defense attorney will work with U.S. and foreign officials to show that his client had no knowledge of any conspiracies or illegal actions. A defense attorney will also examine every step of the international investigation to ensure that U.S. officials followed proper protocol including determining if all warrants were properly obtained and executed, reviewing police recordings and interviewing all relevant witnesses.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

On Monday, nine men were arraigned in a Rome, Georgia federal court for allegedly scamming a paper mill out of $4.8 million dollars. Federal authorities say the mill paid for timber that was never delivered.

The Atlanta Journal Constitution has the story.

The mill, Temple-Inland paper mill, was allegedly conned out of the millions of dollars from 2004 to 2006. Prosecutors believe that Aaron Freeman, who worked as a scale house operator at the mill, used the mill’s computers to create two weight readings when a truck went though the mill’s scale. One reading would be for timber that was actually delivered while the other would be for a phony shipment. Freeman would then allegedly recruit truck drivers to help in the scheme by claiming credit for the phony shipments.

The nine men were charged with conspiracy to commit wire fraud which carries a sentence of up to 20 years and a $250,000 fine per offense. The names charged in the indictment include Aaron Freeman, Kevin Fields, Curtis Hart, Jason Joseph, Roger Carthern, Andrew Carthern, David Carthern, Robert Frank Ferguson and George Tate. Freeman, Fields and Joseph were also charged with conspiracy to commit money laundering which carries a possible sentence of 20 years in prison and a $500,000 fine.

Our criminal defense attorneys have successfully defended numerous clients charged with wire fraud and money laundering. While there are many ways to defend against wire fraud allegations, one of the most powerful defenses is good faith. It is important to remember that the government carries the burden of showing that the defendant knowingly participated in the fraud. If a defendant can show that he believed his actions were made in good faith, and that there was no intent to commit any fraud or other unlawful acts, there can generally be no conviction. Good faith can be shown through industry standards, cooperating with law enforcement, promptly acting to fix complaints and consulting with an attorney.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

A Bibb County judge has thrown out charges against a former pastor and a former banker due to a defective indictment. The two men were charged with defrauding church members out of $600,000.

The Macon Telegraph has the story.

Jimmy Collins, 42, was the pastor of God’s Worship Center in Macon. Steven Pittman, 42, was a bank officer for BB&T. Prosecutors say that the two men obtained loans and lines of credit for around 10 church members. Collins allegedly found and influenced members to assist in his church’s alcohol and drug rehabilitation program as well as the Car Vision car lot in which he was a partner. Furthermore, Collins is said to have told the church members that the church would repay the bank loans.

Authorities also believe that the two men used false financial information about the church members, provided the bank with forged documents, and misrepresented the true nature of the loans. Records indicate that the scam may have persisted for as many as six years between 2002 and 2008.

The indictment totaled 13 pages and included a violation of the RICO Act, bank fraud, residential mortgage fraud, forgery, and theft. However, Superior Court Judge Phillip Brown ruled that the indictment lacked enough specificity to allow Collins and Pittman to know what they must defend against. The District Attorney’s Office can either create a new indictment or appeal Judge Brown’s ruling.

In addition to criminal charges, members have filed lawsuits against the two men and BB&T. Since the initiation of the suits, BB&T has settled with the church members.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

On Thursday, a former Henry County lawyer pleaded guilty in federal court to running a real estate scam in which he stole more than $2 million. Authorities say 24 individuals across Georgia, Tennessee and Florida fell victim to the scheme.

The Atlanta Journal Constitution has the story.

Steven H. Ballard was accused of operating the scheme between 2002 and 2006. Authorities say he promised clients profits in excess of 50 percent, but upon taking their money, he would simply deposit the funds into his firm’s escrow account. Prosecutors believe he would show investors forged legal documents and deeds to make them think transactions had occurred. Perhaps most shocking of all is the fact that many of the victims were friends and colleagues of Ballard.

In one case, Ballard sold a condo in Panama City, Florida to a retired firefighter. However, the condo was actually an empty lot that had been sold to numerous parties. The firefighter used his life savings to make the investment.

Ballard is scheduled to be sentenced in late September and faces a possible 20 years in prison. He must also pay the money back he stole. He has thus far returned about half the money, and is currently working at a convenient store and organizing golf tournaments to pay back the rest.

Ballard started practicing law in 1981 and was even an adjunct professor at Clayton State University. He was disbarred in 2006.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

Arthur James Marshall Jr., 40, was arrested on Wednesday for allegedly swindling more then $1 million from banks. Prosecutors say Marshall used false information to obtain loans for his real estate enterprises.

The Atlanta Journal Constitution has the story here.

A grand jury in Savannah indicted Marshall last week on 22 counts including bank fraud, money laundering, and mail fraud. On Wednesday, Marshall was arrested in Miami. The indictment states that Marshall provided three banks with false information on documents to qualify for loans to buy and build on seven properties in Augusta and Evans. The documents in question included financial statements, sales contracts, and pre-approval letters. The loans were taken out in 2007 and 2008.

The indictment also alleges that Marshall deceived a mortgage lender in 2007 by using a fake buyer to apply for a loan in order to buy a home Marshall wanted. Allegedly, Marshall gave the fake buyer falsified paperwork and a down payment to carry out the fraud. Additionally, Marshall is accused of taking $100,000 from an Evans couple in 2008 who paid Marshall to build a house. Prosecutors say that Marshall did little work on the home and refused to hand over the property’s title to the couple.

Marshall is known for playing as a wide receiver for the Denver Broncos and the New York Giants from 1991 to 1996. He also played for the University of Georgia between 1988 and 1991. After his career in the NFL, Marshall moved to Augusta where he operated four real estate and construction businesses. One of his businesses, Custom Contractors and Associates, filed for bankruptcy last year after owing more than $10 million to creditors.

Marshall is expected to appear in court for his initial appearance this week.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

A federal judge has set a bond for a woman accused of swindling more than $2 million from investors in an alleged Ponzi scheme. The granting of bond comes after a prior judge refused to set bond

The Macon Telegraph has the story.

Saundra McKinney Pyles, 52, and Gary Sheldon Hutcheson, 56, are accused of defrauding more than four dozen investors including prominent business owners and doctors from Macon. The scheme allegedly began in 2006 when Hutcheson told potential investors that he would place their money in a hedge fund named Georgia Ionics Fund LLC. Authorities believe that Hutcheson invested $780,000 while pocketing over $1.3 million of the investors’ money. Most of the money that was invested was lost. As a result, Pyles was indicted in April on five counts of mail fraud and five counts of money laundering in the Middle District of Georgia.

On May 20, Magistrate Judge Leon Barfield from the Southern District of Georgia refused to set bond for Pyles. Barfield presided over the case, because the magistrate judge and all four district judges of the Middle District of Georgia recused themselves due to their connections with the alleged victims. The case has since been assigned to Chief Judge Jack T. Camp of the Northern District of Georgia.

Pyle’s attorney, Reza Sedghi, appealed the ruling denying bond, and at the hearing asking the court to reconsider on Tuesday, the judge agreed with Sedghi and Pyles was given a $20,000 bond. However, the bond carries with it a condition that someone will have to come forward and say that they will house Pyles. Further conditions are set to be issued this week.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

A federal magistrate judge has denied bond to a woman indicted for operating a Ponzi scheme which cheated investors out of $2.11 million. Her lawyer has filed a motion with the court to reconsider releasing her on bond.

The Macon Telegraph has the story.

Saundra McKinney Pyles, 52, was indicted on five counts of mail fraud and five counts of money laundering for her alleged involvement in a Ponzi scheme. Today, she sits in jail after Magistrate Judge Leon Barfield refused to grant her a bond. Her lawyer argues that Barfield erred in denying bond, and that the court should grant bond upon a motion to reconsider.

Under federal law, it is within the power of a magistrate judge to grant or deny bond. At a bond hearing, the judge may release the defendant on his or her own recognizance, set conditions for bond, deny bond, or temporarily detain the defendant to allow for proceedings such as deportation. A defendant may be released on his or her own recognizance unless the judge determines that such release will not reasonably assure the appearance of the defendant at future court dates or that such release will endanger the safety of other persons.

A defendant who is not released on his own recognizance may still be released subject to various conditions such as reporting to law enforcement and avoiding contact with victims and witnesses. The judge is directed to impose conditions so as to assure the return of the defendant as well as the safety of others. For some crimes, the government may move the court to determine if such conditions can carry out the goals of return and safety. This occurs when a defendant has committed certain violent offenses, crimes which carry life imprisonment or death, certain offenses under the Controlled Substances Act, any felony if the person has been convicted of two or more specific offenses, and certain felonies that involve a minor victim, possession of a firearm or destructive device, or the failure to register. When a person has been convicted of these crimes, it generally gives rise to a presumption that he will not appear in court and is not safe to be released in the community. The government or court may also hold a hearing to see if any conditions will be effective in cases involving a serious risk that the defendant will flee, obstruct justice, or threaten, injure, or intimidate a prospective witness or juror. It is also presumed that no condition will reasonably assure the appearance of the defendant and the safety of others for certain offenses under the Controlled Substances Act, various violent acts, and acts involving minor victims.

In determining whether there are conditions of release which will assure appearance and safety, the judge must take into account the nature and circumstances of the offense charged, the weight of evidence against the person, the history and characteristics of the person, and the nature and seriousness of the danger to any person or the community that would be posed by the defendant’s release. If the judge finds that no conditions for the crime alleged will reasonably assure the defendant’s appearance at future proceedings and the safety of others, he may order the detention of the defendant before trial.

In Pyles’ case, the court found that Pyles represents a serious risk to obstruct justice or to intimidate witnesses when it denied her bond. Pyles’ attorney argues that such a determination is erroneous, since there is no evidence to suggest she represents a threat to anyone. However, an FBI agent testified that Pyles violated conditions of her bond by calling family, potential witnesses, and alleged victims. Yet, the FBI agent also testified that family members initiated some of the calls, and that none of the family members expressed any fear of Pyles. In addition, only three or four phone calls were placed to family members and one of those was to a mentally ill member.

Aside from detaining Pyles until trial, the court could put her under house arrest, give her a security bond, or impose travel restrictions.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

On Thursday, 13 people from the Atlanta area were indicted by a federal grand jury for making and distributing counterfeit DVD movies.

The Atlanta Journal Constitution has the story.

The 13 allegedly counterfeited movies such as Gran Torino, Changeling, and Dark Knight. They also allegedly pirated recordings of Lil Wayne, Kanye West, T.I., and Robin Thicke.

Most of the defendants are from Atlanta while the others are from Lawrenceville, Fairburn, Austell, Decatur, Lithonia, and Barry. The ages of the defendants range from 24 to 68 years old.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

On Tuesday, police raided 14 stores and homes in Clarke, Oconee, and Gwinnett counties which capped a three-month investigation into fencing and gambling operations.

The Athens Banner-Herald has the story.

Police say that convenience store owners and employees placed orders with criminals to steal certain items from homes, businesses, and vehicles. Authorities grew suspicious when they began finding lists of items on burglars such as specific flat screen televisions and laptops. This fact combined with the high rates of thefts for those goods led to the conclusion that there must be some sort of outlet. After further investigation, police armed themselves with arrest warrants for nine individuals they believed were connected with the fencing rings.

Police also believe some of the businesses ran illegal gambling operations. These businesses allegedly gave cash to customers who played poker machines.

The raids began around 9:30 a.m. at five businesses and two homes in Clarke County, one store and four homes in Oconee County, and two homes in Gwinnett County. The nine suspects were arrested and face 40 criminal charges including theft by receiving and illegal gambling.

Reports state that the suspects may also face state and federal racketeering charges. Federal charges can be brought in theft and fencing cases that involve Interstate commerce, and there are federal laws that regulate certain gambling activities.

If the case goes federal, charges could be brought in either the Northern or Middle Districts of Georgia.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

U.S. Marshals arrested two Macon residents in Colorado on Tuesday for their involvement in a Ponzi scheme which took in over $2 million.

The Macon Telegraph has the story.

Federal authorities have charged both Gary Hutcheson and Saundra McKinney Pyles with five counts of mail fraud and five counts of money laundering in connection with the Ponzi scheme. Generally, each of these charges may carry with it a sentence of up to 20 years.

Authorities believe that between May 2006 and July 2008 the two devised a scheme to defraud individual investors and groups of investors. Hutcheson allegedly created a company called Georgia Ionics Fund and used two securities brokers named CyberTrade Inc. and Cobra Trading to carry out the scheme. Hutcheson is believed to have attracted investors by asking them to place funds in what he called a hedge fund. He also claimed to have expertise in making investments by lauding his past success when in fact he had never succeeded in investing.

The government claims that Hutcheson deposited more than $2.1 million into bank accounts which he received from investors. Of this, he invested only $780,000 and lost the majority of it. In order to convince investors that the fund was successful, Hutcheson paid out $457,000 to certain investors claiming that the money was profit. In fact, the money was simply a return of the investor’s own money or money which was acquired from new investors. In the end, authorities believe he kept more than $1.3 million for himself.

Even though Hutcheson and Pyles did not make any profits, the government claims that they falsely represented that profits were being made and that the fund was successful. The two now await extradition proceedings from Colorado to Georgia.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Page Pate was recently the Chairman of the Criminal Law Section of the Atlanta Bar Association.

The Georgia Court of Appeals recently had to determine if circumstantial evidence which was consistent with both the prosecution’s story and the defendant’s story was enough to convict a defendant of burglary and criminal trespass. The court ruled that the evidence was insufficient to find the defendant guilty, since there was a reasonable alternative to the prosecution’s story.

In Parker v. State, the defendant, Parker, was convicted by a jury after he was accused of stealing a generator and a guitar from the victim’s barn. Parker argued he was simply dropping off a saw. Parker knew the victim through a friend which he stayed with. Five days before the incident Parker tried to sell a saw to the victim, but the victim did not want it. The victim then went out of town for a few days. When the victim returned, there was an answering machine message by Parker stating that he had left the saw in the victim’s barn; however, the victim never gave Parker permission to enter the barn. It was also then that the victim realized the generator and guitar were missing.

Parker then called the victim to ask if he could come by and talk about selling him the saw. The victim agreed and notified police that Parker would be coming. Soon after Parker arrived, officers arrested him. Three months later a friend of Parker’s told the victim that Parker had brought over a machine that was either a generator or an air compressor two weeks prior to the arrest, but that he never saw a guitar. Additionally, the friend Parker was staying with testified that she saw Parker at the victim’s house while the victim was out of town. Parker told her that he was dropping off a saw, and she never saw Parker take anything. Furthermore, the victim stated on cross that a friend of his entered his barn while he was away to retrieve a four-wheeler. This friend also saw Parker at the barn and described him as fidgety.

On appeal, Parker argued the circumstantial evidence was not enough for a conviction. The general rule is that for there to be a conviction based solely on circumstantial evidence, the facts must only be consistent with guilt and must exclude every other reasonable possibility. The state contended the evidence was direct, since witnesses saw Parker at the scene. However, the court disagreed by reasoning that the witnesses never saw Parker take anything. Furthermore, the court noted that proximity without additional evidence of participation in a crime cannot support a conviction. The only additional evidence offered was that the defendant was fidgety which the court dismissed as hearsay and of no value. Since there was another reasonable possibility aside from the state’s burglary story, a conviction of Parker was improper and the court reversed his convictions.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.

On Monday, Robert Price Copeland, a Marietta Georgia lawyer, pleaded guilty to federal wire fraud charges in connection with a $28 million Ponzi scheme. The government alleges that the scheme defrauded over 125 people.

The Atlanta Journal Constitution has the story.

The 48 year old was accused of scamming victims across the nation from 2004 to 2009. In some cases, the victims were senior citizens who lost their life savings. Investigators say that Copeland promised some victims up to 15 percent on their investments in under a year. It is believed that Copeland solicited his victims through seminars and financial planners.

Copeland could face 20 years in prison, a $25,000 fine, restitution, and forfeiture of all proceeds gained from his fraudulent schemes when he is sentenced. The Security Exchange Commission has also brought a civil case against Copeland.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.

With the downturn in the economy, there has been a drastic increase in companies involved in mortgage modification scams. Federal and state authorities are beginning to crack down on such companies.

The Atlanta Journal Constitution has the story here.

The federal government’s hope to modify or refinance up to 9 million mortgages has sparked the flurry of scams. Government officials note that the companies involved in the fraud often have official sounding names that make the borrowers think they are tied to the government. These fraudulent companies charge upfront fees of $1,000 to $3,000 for assistance with loan modifications that hardly ever pay off. Officials also note that borrowers can receive help for free from government-approved housing counselors. Consumer advocates agree that even legitimate consultants are no better than credit counselors who work with lenders at no charge.

The Federal Trade Commission has warned that these companies will use tactics such as promises to stop foreclosures, modify a loan for money upfront, or guarantees that a home will be saved. The FBI is currently investigating about 2,100 mortgage fraud cases which is a 400% increase from five years ago. The FTC has sent letters to 71 companies warning them of their suspicious advertisements and has filed complaints against others.

The response by states has been mixed. Some states have created tougher penalties for companies involved in foreclosure scams, and prosecutors in some jurisdictions have even brought criminal charges. However, many states are relying civil lawsuits.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for people charged with serious crimes. We have successfully represented clients facing serious federal criminal charges and state criminal charges in courts across Georgia. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine. Our firm is also listed in the Bar Register of Preeminent Lawyers by Martindale-Hubbell.

Another mortgage fraud conviction in Atlanta, and another lengthy sentence. In federal court last Friday, Joseph Sterling Jetton received a 14 year prison sentence and was ordered to pay over $11 million in restitution.

The Macon Georgia Telegraph has the story.

Our criminal defense lawyers have handled many mortgage fraud cases in Atlanta and other parts of Georgia. We have represented real estate agents, mortgage brokers, closing attorneys, investors and straw purchasers.

Our lawyers have been able to successfully resolve a few complex mortgage fraud investigations on behalf of our clients by showing that these clients were not aware of the fraudulent statements made on the loan applications and closing documents. In cases that cannot be resolved without a plea, the ultimate sentence usually depends on the amount of loss attrbuted to the person, and that person's role in the overall offense.

Considering the continued decline of the real estate market, and the amount of properties going into foreclosure, our lawyers expect more criminal investigations into mortgage fraud and other questionable real estate transactions in Atlanta.

Georgia and federal law enforcement agents are investigating a large identity theft ring alleged to have cloned numerous credit cards in the Athens Georgia area. Investigators allege that the ring was led by Vikas Yadav from his home in Clarke County. According to law enforcement, Yadav was able to obtain credit card numbers through his employment at a local liquor store.

The Athens Banner Herald has the story. The article also contains a link to the search warrant obtained by the Athens Georgia police and U.S. Secret Service agents involved in the investigation.

No arrests have been made in Georgia, although Yadav has been arrested and charged in federal court in Mississippi. Other arrests have been made in North Carolina and Atlanta. Considering the fact that the alleged conspiracy appears to involve multiple states, all of the people arrested will likely face federal fraud charges.

Our firm has recently handled many identity theft and fraud cases in federal court in Atlanta and other parts of Georgia. The punishment for this type of offense can be severe. The amount of time in custody usually depends on the total amount of money involved. The federal sentencing guidelines also call for significant sentencing enhancements in fraud cases when identify theft is involved.

The investigation in this case remains pending.

A new mortgage fraud indictment was returned in federal court in Atlanta last week.

The new indictment alleges a mortgage fraud scheme involving the purchase of condos on Memorial Drive in Atlanta. The government alleges that the scheme involved fraudulently inflated appraisals. One of those charged is a former IRS employee.

The Atlanta Journal Constitution has the story.

There have been several large federal mortgage fraud prosecutions in Atlanta over the past few years. Our firm has been involved in many of them. We have represented closing attorneys, mortgage brokers, appraisers, investors and the inevitable "straw buyers." The alleged losses have been staggering, usually in the many millions of dollars.

While the government has been mostly successful in these prosecutions, defense lawyers who have represented defendants in these cases often try to point the finger at the lenders who were accepting obviously false loan applications and inflated appraisals without question. There's no doubt that mortgage lenders had a role in the rampant fraud that plagues the residential mortgage industry, especially in the so-called "sub-prime" market. The lenders were approving loans left and right with little concern if the borrowers later defaulted. While that sounds strange, the fact is that most lenders sell the mortgage on the secondary market shortly after the borrower closes on the property. At that point, it's someone else's problem.

But a false statement is still a false statement, and we expect both federal and state prosecutors in Georgia to continue to purse mortgage fraud indictments. There is certainly no shortage of foreclosed properties to review.