Like many in New York, you might assume accusations of fraud to be limited to organizations operating in the professional, for-profit word. Your charitable work for a non-profit organization could certainly not be subject to such suspicions, right? That is what many of those that we here at Sapone & Petrillo, LLP have worked with believed, yet a lack of knowledge or poor management ultimately led to them facing fraud charges. How, then, can you avoid such penalties with your charitable organization?
The New York court system is no stranger to fraud cases, but a recent case involving bank loans to two media companies may prove difficult to prosecute because the banks who lent the money suffered no financial loss.
The common conceptual image that many in New York may have of fraud schemes is likely of a high-profile executive who steals millions from a large company and corporation. In reality, however, fraud can occur amongst anyone from any walk of life. Any action meant to financially injure a person or organization perpetuated through deceit and misrepresentations may qualify as fraud. Many such cases may even arise from people supposedly looking to take advantage of procedural holes in systems with which they are familiar.
People often invest in securities in New York with the naive expectation of generating significant returns on their investments in a short amount of time. In reality, short-term financial gains made from securities are much more modest, with some people even losing money on such investments. When the latter occurs (and you happen the be the one who brokered said deals), accusations of fraud are often quick to accompany such losses. How, then, are you to show that work was legitimate, and that a client is simply trying to punish you for his or her unrealistic expectations?
You hear the word "fraud," and immediately may think of nefarious characters looking to steal millions from businesses or private citizens in New York. In reality, however, fraud accusations can be far-reaching. The Federal Bureau of Investigation defines it as "the intentional perversion of the truth for the purpose of inducing another person or other entity in reliance upon it to part with something of value or to surrender a legal right." This potentially broad application has led many of those that we here at Sapone & Petrillo, LLP have worked with to be unwittingly accused of conducted fraudulent activities. One such activity that is becoming increasingly prevalent is return fraud.
Perhaps one of the reason why so many are seemingly quick to adjudicate those accused of crimes in New York as being guilty in the court of public opinion is that they view criminal activity as being largely "black-and-white" (either one did commit a crime, or he or she did not). Yet in many cases, it is not that simple. Cases involving fraud, for example, can often arise due to simple mismanagement or judgment errors (such as offering bad investment advice or inadvertently comingling funds). In these cases, the actions of the accused should be closely examined to see if there truly was any criminal intent involved.
When you own your own business in New York (or are least charged with the marketing one), you may quickly discover that acheiving success often requires not only staying current with industry best practices, but also in observing and learning from your competitors. That may include taking some of the things that have helped make competitors successful and implementing them in your own business. Yet this prompts the question of at what point does doing so qualify as intellectual property infringement?
No matter how the situation panned out, a fraud charge can often be the beginning of a long and arduous legal battle. Some New York residents who have faced repercussions for such charges are left picking up the pieces long after a charge has come and gone. According to some sources, a new type of fraud has swept across the nation: business email compromises.
Wise use of your money may include placing it in investment accounts in the hope of generating a strong return over time. However, if you are like most in New York, you are more than likely a "hands off" investor that leaves the management of your portfolio to a professional. There is wisdom in this; after all, the industry specific knowledge and experience a broker brings makes him or her more likely to develop a sound investment strategy. However, relying solely on him or her may open the door for fraud. One form of such fraud is known as "churning."
Among one of the most common types of white collar crimes in New York City is wire fraud. Similar to mail fraud, wire fraud constitutes as any financial deceit using informational technology, and comes with serious consequences. Those charged with wire fraud often face decades behind bars, as well as thousands in fines. Nevertheless, wire fraud is the most widely used form of financial deception in the country, and countless New York residents are arrested each year on wire fraud charges.