New York Paralegal Blog

On September 20, 2011, Kenneth Marsh, the co-owner and CEO of Gryphon Financial, was sentenced to 8 years in federal prison for securities fraud. Looking back at this case today provides a clear historical example of the extensive fraud prosecuted in the wake of the 2008 financial crisis, and it highlights the powerful laws in place to protect investors from predatory schemes. The Crime: Why Was It Securities Fraud? Marsh and his 17 co-defendants orchestrated a scheme that defrauded over 5,000 people out of approximately $20 million in fees. The fraud was rooted in two major deceptions, both of which violated laws designed to ensure honesty in the financial markets: The Fictional Experts: Marsh, who was a former stockbroker barred from the securities industry by FINRA (meaning he was permanently prohibited from working with a regulated brokerage firm), hid his real identity. Instead, he and his team sold advice under the aliases of "Michael Warren" and "Ken M...

We rely on our law enforcement officers every single day. They are the brave men and women who keep our communities safe, often putting themselves in harm's way. We trust them to act with integrity, to follow their training, and most importantly, to respect the fundamental rights that are the bedrock of our nation. But what happens when that trust is shattered? This week, justice was served in a case that reminds us of the serious consequences when an officer crosses the line. Mario Stewart, a Sergeant with the Mount Vernon Police Department, was sentenced to six months in prison and six months of home confinement for using excessive force against a vulnerable individual. In 2019, Sergeant Stewart and other officers were called to assist someone experiencing a mental health crisis. This is precisely the kind of situation where we expect officers to act with care, compassion, and de-escalation techniques. However, while the victim was already restrained – handcuffed and ...

Yesterday, a somber chapter closed in a case that highlights the critical importance of workplace safety and honest accountability. Richard Zagger, a 58-year-old supervisor from Blue Point, New York, received a sentence of one year in prison and two years of supervised release. His crime? Conspiracy and obstruction of justice in connection with a fatal construction accident. This tragic story began when Zagger, overseeing a project for Northridge Construction Corporation in East Patchogue, Long Island, was in charge of assembling a metal shed. During the construction, a horrific accident occurred: one of the employees fell from the improperly secured shed roof and died. The Occupational Safety and Health Administration (OSHA), the agency responsible for ensuring safe working conditions, launched an investigation. What they found was deeply concerning: multiple violations of worker safety standards. A key issue was the failure to keep the metal structure stable throughout the construct...

A Nigerian man, Kingsley Uchelue Utulu, has been sentenced to 63 months in prison for his role in a sophisticated hacking and identity theft operation that targeted U.S. businesses and individuals, resulting in millions of dollars in losses. U.S. Attorney for the Southern District of New York, Jay Clayton, announced the sentencing on Friday, highlighting the collaborative efforts of law enforcement to bring offshore criminals to justice. The Scheme: Hacking, Stealing, and Cashing In According to court documents, Utulu and his Nigeria-based co-conspirators engaged in a wide-ranging scheme that began around 2019. Here’s a breakdown of their operation: Hacking Tax Businesses: The group targeted U.S.-based tax preparation companies with "spearphishing" emails to gain unauthorized access to their computer systems. Stealing Identities: Once inside, they stole the sensitive personal and financial data of thousands of American taxpayers. Fraudulent Tax Filings: Using the stolen info...

  Many remember the powerful story of Erin Brockovich, the tenacious single mother who took on a corporate giant and won. A key figure behind that landmark case was her lawyer, Thomas Girardi. Once celebrated as a champion for the underdog, the 86-year-old disbarred attorney is now facing 87 months in federal prison. Girardi was sentenced for a shocking crime: stealing tens of millions of dollars from the very clients he was supposed to be helping. These weren't just any clients; many were victims of severe accidents, trusting Girardi to fight for them and secure their futures. Instead of delivering their hard-won settlement money, he used it to fund a lavish lifestyle. For over a decade, Girardi ran his prestigious Los Angeles law firm, Girardi Keese, like a personal piggy bank. The court found he operated a Ponzi-like scheme, using new client settlements to partially pay off the clients he had previously stolen from. When clients asked where their money was, Girardi and his team...

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETER J. AJEMIAN, a Board-certified orthopedist, was sentenced today in Manhattan federal court to eight years in prison for his role in the alleged massive fraud scheme in which Long Island Railroad (“LIRR”) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. Between the late 1990s and 2008, AJEMIAN recommended that at least 734 retiring LIRR employees receive disability benefits, and was responsible for treating nearly half of all LIRR employees who retired and received disability benefits in one four-year period. AJEMIAN pled guilty in January 2013 to one count of conspiracy to commit mail fraud, wire fraud, and health care fraud, and one count of health care fraud before U.S. District Judge Victor Marrero, who also imposed today’s sentence.

Sandy Annabi, the former Democratic Majority Leader of the Yonkers City Council, and Zehy Jereis, the former head of the Yonkers Republican Party, were sentenced today to six years and four years in prison respectively for their bribery and extortion convictions related to their sale of Annabi’s City Council seat.

TUCSON, AZ—Jared Lee Loughner, 24, of Tucson, Arizona, was sentenced today by U.S. District Judge Larry A. Burns in federal district court on charges stemming from the January 8, 2011 shooting in Tucson in which he killed six people and wounded 13 others. Loughner was sentenced to life in prison with no eligibility for parole.

KANSAS CITY, MO—David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Missouri man was sentenced in federal court today for drugging and molesting 13 child victims, with some of the sexual abuse videotaped, over a four-year period.

NEWARK—An Essex County, New Jersey man responsible for a gunpoint carjacking in Newark last winter was sentenced today to 147months in prison, U.S. Attorney Paul J. Fishman announced.

Manhattan District Attorney Cyrus R. Vance, Jr., announced the sentencing of TRACEY NELSON, 25, to 6-to-18 years in prison for her role in an organized identity theft and financial crime ring that relied on corrupt employees at banks, a non-profit institution, a high-end car dealership, and a real estate management company to steal and traffic in the names, dates of birth, addresses, Social Security numbers, and financial account information of unsuspecting victims. The conspirators used the stolen information to conduct fraudulent financial transactions with the victims’ identities.

EMILIO FUSCO, a member of the Genovese Organized Crime Family of La Cosa Nostra (the “Genovese Crime Family”), was sentenced today in Manhattan federal court to 25 years in prison for various racketeering conspiracy and extortion crimes. FUSCO was convicted in May 2012 of one count of conspiring to participate in the affairs of the Genovese Organized Crime Family, one count of conspiring to extort the owner of various restaurants and strip clubs in Springfield, Massachusetts, and one count of interstate travel in aid of racketeering after a three-week jury trial before U.S. District Judge P. Kevin Castel, who also imposed today’s sentence. At today’s sentencing, Judge Castel also found that FUSCO committed the November 2003 murders of Adolfo Bruno and Gary Westerman in Springfield, Massachusetts.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that KHADDY GARCIA was sentenced today to 10 years in prison in connection with a fraudulent scheme to withdraw funds from various bank accounts, and a second fraudulent scheme to induce a venture capital fund to wire $2 million to an account GARCIA controlled. He was sentenced in Manhattan federal court by U.S. District Judge Katherine B. Forrest.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Chad Elie, a payment processor who worked with Internet poker companies Pokerstars, Full Tilt Poker, and Absolute Poker (the “poker companies”), was sentenced today by U.S. District Judge Lewis A. Kaplan to five months in prison for his role in a scheme to deceive banks into processing hundreds of millions of dollars in Internet gambling transactions. Elie, who had previously withdrawn all claims to approximately $25 million seized from payment processing accounts linked to him as required by his plea agreement, was further ordered to forfeit $500,000 to the United States. He pled guilty in March 2012 to conspiracy to commit bank fraud and to operate illegal gambling businesses.

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the sentencing of JOEL LUCIANO, 30, a ringleader of a well-organized check fraud ring responsible for stealing at least $450,000 from more than 90 accounts at TD Bank. He was sentenced to 3-to-9 years in state prison. On August 28, 2012, LUCIANO pleaded guilty to the top charge of the indictment, Grand Larceny in the Second Degree.

RAJIV GOEL, a former executive at Intel Corporation (“Intel”), was sentenced today to two years of probation for his participation in an insider trading scheme in which GOEL provided material, nonpublic information (“Inside Information”) about Intel to Raj Rajaratnam, the head of Galleon Group (“Galleon”). Rajaratnam then traded based, in part, on the Inside Information. GOEL pled guilty in February 2010 to one count of conspiracy to commit securities fraud and one count of securities fraud pursuant to a cooperation agreement with the government. He was sentenced in Manhattan federal court by U.S. District Judge Barbara S. Jones.

GARY ORTIZ, a former New York City Police Department (NYPD) officer, was sentenced today to one year and one day in prison for engaging in a scheme involving the illegal interstate transport of firearms and stolen goods. ORTIZ was sentenced in Manhattan federal court by U.S. District Judge Paul G. Gardephe.

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the indictment of GORDON FRANCIS, 54, for the murder of James Hawkins, who was found dead in his apartment in Chelsea in 1993. The case remained unsolved for 19 years, but investigators from the Manhattan District Attorney’s Office and the New York City Police Department’s Cold Case Squad re-interviewed witnesses and used new forensic techniques. The defendant is charged with Murder in the Second Degree.[1]

PHILADELPHIA—Joseph M. Braas, 46, of Lititz, Pennsylvania, was sentenced today to 180 months in prison for his role in a fraud conspiracy that caused the Bank of Lancaster County, which was chartered in 1863 and is one of the five oldest banking organizations in the country, to cease its independent existence. As a result of the fraud, hundreds of jobs were lost. Braas was chief operating officer of Equipment Finance LLC (EFI), when he and his co-defendants—Michael J. Schlager, Mary C. Stankiewicz, Misty L. Kroesen, Curtis A. Kroesen, John Wiley Spann, Harold W. Young, and John S. Tomberlin—engaged in a sophisticated loan fraud scheme that caused losses of approximately $53 million at EFI. In addition to the prison term, U.S. District Court Judge Paul S. Diamond also ordered Braas to pay restitution in the amount of $53 million.

JACKSONVILLE, FL—U.S. District Judge Marcia Morales Howard yesterday sentenced Steven Beumel (49, Jacksonville) to 30 years in federal prison for one count of tampering with a consumer product resulting in death, four counts of tampering with a consumer product resulting in serious bodily injury, and five counts of stealing Fentanyl by deception.