Michigan Criminal Lawyers Blog

August 22, 2014

Dearborn Heights Former School Board Member Pleads Guilty to Tax Fraud

On August 15, U.S Attorney Barbara L. McQuade announced that Janey Golani, a 54-year-old former Crestwood school board member, pleaded guilty to willfully filing false tax returns. Golani is a former education trustee of the board, and was employed by Hind Oram as office manager of several companies, including International Outdoor Advertising. She pleaded guilty before Judge Stephen J. Murphy, III in U.S. District Court on August 14.

Golani embezzled money from Hind Oram beginning in 2006 and continuing through 2009, however she intentionally did not report the embezzled income on the federal tax returns she filed.

Jarod Koopman, IRS criminal investigation agent out of the Detroit Field Office, said that income that is gained illegally is subject to income tax, a fact made very clear in the Internal Revenue Tax Code. Even income that is embezzled is subject to federal income tax.

In 2008, Golani understated her income by more than $234,000. Over the four-year time span from 2006 through 2009, Golani did not report the embezzled funds on her federal income tax returns. According to McQuade, this resulted in a tax loss in excess of $225,000.

The IRS – Criminal Investigation division investigated Golani’s case; she is scheduled to be sentenced before Judge Murphy on January 9, 2015.

Many people who embezzle money from their employers are understandably afraid to report that money on their federal income tax returns, not only out of fear of being caught, but in order to avoid paying additional tax. Regardless of whether income is obtained in an illegal manner, it is still subject to income tax.

Janey Golani has been charged with embezzling from her employer and filing false tax returns, both which are serious charges. Although she did plead guilty, the criminal penalties for these types of white collar crimes are harsh.

In Michigan, the crime of embezzlement of money or property valued at more than $100,000 is a felony. Individuals who are found guilty may be sentenced to a maximum of 20 years in prison, and fined up to $50,000 or three times the value of the money/property, whichever is greater. In many cases, individuals who plead guilty and avoid going to trial may receive a sentence that is less harsh. Filing fraudulent tax returns is a serious matter as well which will result in prison time and fines. We will learn of Golani’s fate when she is sentenced in January.

August 21, 2014

Tulsa Ex-Police Officer’s Conviction for Armed Robbery Upheld by Oklahoma Appeals Court

by Scott Grabel

Approximately three weeks ago the conviction of Marvin Blades, Jr., a former Tulsa police officer, for armed robbery was affirmed by the Oklahoma Court of Criminal Appeals, according to a news article at Tulsa World.

Blades, who is 39 years old, was found guilty of pulling over Hispanic individuals while on duty and in uniform, then stealing money from their wallets. He was sentenced to three 35 year prison terms which are to run concurrently. He was originally charged with second-degree robbery, however the charges were upgraded to five counts of robbery with a firearm after investigators discovered his ruse. The investigation began after police were informed that an officer had been stealing from Hispanic drivers’ wallets.

Blades was caught after the Oklahoma Bureau of Narcotics and the Tulsa Police Special Investigation Division implemented a sting operation. During the operation, Blades pulled over an OBN agent, telling him to get in the back seat of the police car, but to leave his wallet on the seat. Upon returning to his car, the undercover OBN agent found that Blades had taken $600 from his wallet. Blades was then apprehended by officers, who found he had $600 in his pocket.

Blades’ defense lawyers immediately filed an appeal following his conviction, arguing that the evidence to support a conviction on five counts of armed robbery was insufficient. In addition, appeals attorneys argued that their client did not brandish his firearm or threaten the victims in any way, and that two of the alleged victims could not identify Blades as the officer who robbed them.

The appeals court upheld Blades’ conviction due to the fact that under Oklahoma state law, the offender does not have to show a weapon, brandish it, or point it at the victim to be found guilty. The mere presence of the firearm, whether it is real or fake, is sufficient to be charged with armed robbery.

It is extremely difficult to have a conviction overturned on appeal; the defendant must have an appellate attorney who is highly experienced and skilled in the appeals process. Anyone in the state of Michigan who has been wrongly convicted of a crime or who feels that mistakes were made in the criminal justice process must consult with a Michigan criminal appeals lawyer who is tough, and knows how to thoroughly investigate your case to find any mistakes or evidence that may be solid enough to help you win on appeal.

August 21, 2014

Oregon Man in a Pickle After License Suspended Over 33-year-old Ticket

by Scott Grabel

As strange as it sounds, a Portland man recently found out his driver’s license had been suspended just weeks earlier when he was pulled over by police. Kevin Berry, who though he was being pulled over for speeding, was informed by the police officer that his license had been suspended because of an unpaid traffic ticket dating back to 1981.

Berry was pulled over in Milwaukie when he learned that his driver’s license had been suspended on July 17. Not sure of whether police new what they were talking about, he checked with the DMV who confirmed the license suspension. How did this happen? A misspelling of Berry’s name at the DMV was the problem, according to a spokesperson who said that Berry’s name had mistakenly been spelled as “Berdy” when the record for the ticket was created.

A warning letter was sent to Berry about the driver’s license suspension in July, however Berry had just moved and did not receive the warning. Because the statute of limitations is no longer valid after 33 years, the DMV said that all Berry has to do is pay $75 to get his license reinstated, and that he does not have to pay the ticket – but Berry disagrees. He says “It’s the principle,” and believes he should not be responsible for paying the fee since the typo was the error of the DMV.

News reports at KATU and Newser do not indicate if the issue has been resolved.

Michigan driver’s license reinstatement attorneys no doubt hear some very strange stories, but this one tops them all. Berry never receives the first warning letter that his license will be suspended for non-payment of the ticket because of the misspelling of his name. Then, last month when another letter is sent out to inform him of the suspension, he has just moved and the letter does not get forwarded to his new address. Hopefully things will be resolved fairly.

August 20, 2014

Woman Arrested in Muskegon for Allegedly Driving Drunk with Four Children in Vehicle

by Scott Grabel

On Monday, August 18, a 32-year-old woman whose name has not yet been released was arrested for allegedly driving while intoxicated with her four children in the car with her, according to news reports at Fox 17 and Mlive.com. This is the woman’s second drunk driving offense; she was convicted of DUI in 2002.

According to Muskegon County Chief Assistant Prosecutor Timothy Maat, the woman’s name could not be released until a warrant is signed and she is arraigned on the charges. Maat also said that the incident occurred just before 2 a.m. on Monday when the woman was pulled over on suspicion of drunken driving in the area of Getty Street and Ada Avenue. The woman’s blood alcohol level was not revealed in news reports.

The woman was charged with one count of drunk driving with an occupant under 16 years of age (child endangerment), and was lodged in the Muskegon County Jail as of last reports. In addition, the children were put in the care of their grandmother while Child Protective Services investigates the matter.

In the state of Michigan, anyone who operates a motor vehicle in an impaired or intoxicated state while having a passenger or passengers in the car younger than 16 may face child endangerment charges. Not only may the defendant be labeled for a lifetime when found guilty of child endangerment, the criminal penalties even for a first offense are severe. If convicted, the woman in this case could face up to one year in jail, fines of up to $1,000 plus court costs, possible vehicle immobilization, a driver’s license suspension for 90 days followed by 90 days of restricted driving.

Michigan DUI attorneys know the seriousness of being charged with driving under the influence of alcohol or drugs, regardless of whether minor children are passengers in the vehicle. While an adult should never drive while under the influence to begin with, he/she should certainly not put the lives of children in danger. However, people do make mistakes every day, and may have a lapse in judgment. Thankfully, the children are safe and no one was injured in this situation.

August 19, 2014

‘Operation Hotel California’ Leads to Multiple Arrests in Orlando-based Drug Organization

by Scott Grabel

On Friday, August 8, several people considered “major players” in an Orlando-based drug organization were arrested, according to News 13. Authorities uncovered an elaborate drug trafficking ring in which overnight shipments of drugs originating in California including cocaine and marijuana were arriving at hotels in Orlando, a sting the authorities dubbed ‘Operation Hotel California.’

Several agencies worked in conjunction to make the major drug bust a success including the Orange and Seminole County Sheriff’s Offices, the U.S. Postal Inspection Service, the U.S. Immigration and Customs Enforcement, the Florida Attorney General’s Office of Statewide Prosecution, and the Orlando Metropolitan Bureau of Investigation.

Suspects who were arrested in the drug bust faces various charges from trafficking cocaine and marijuana, conspiracy to traffic cocaine in excess of 400 grams, conspiracy to traffic marijuana in excess of 25 pounds to importation of marijuana and racketeering. News reports indicate that the Orlando Metropolitan Bureau of Investigation began receiving information in December of last year that parcels which were “suspicious” were being delivered to hotels in Orlando, specifically those on International Drive.

At the time of news reports 26 people in all had been identified, arrested, or were in the process of being arrested. While the names were not released at the time, two people were identified. 35-year-old Binh Tran of Westminster, California is believed to be the supplier of the marijuana. Authorities also revealed that 29-year-old Joshua Slemons was the ringleader of the Florida portion of the drug operation.

There is no doubt that the individuals involved in this drug ring will face serious criminal penalties if convicted. In the state of Michigan, cocaine possession with intent to distribute or deliver involving 400 grams up to 449 grams will leave the defendant facing up to 20 years in prison along with fines of up to $250,000 if found guilty. Amounts of more than 450 grams adds a possible additional 10 years in prison to the sentence, and increases fines to a maximum of $500,000.

August 18, 2014

Owner and Operator of Detroit Tax Preparation Service Sentenced for Filing False Returns

by Scott Grabel

On August 13, United States Attorney Barbara L. McQuade announced that Monique Gray, owner and operator of MO Tax Services in Detroit, had been sentenced to 30 days in prison for filing a false federal income tax return. Gray also owns a trucking company, U&M XSpress, Inc.

Gray pleaded guilty to the charge, which was in connection with under-reporting of gross receipts for the tax year 2008. According to court documents, Gray’s tax business and trucking firm generated substantial income during 2008. Businesses are required under the law to correctly report their gross receipts for a given year, however Gray did not report all of the gross receipts. In fact, Gray’s Form 1040 for 2008 indicated gross receipts of $5,458 on a Schedule C Profit or Loss from Business, when the business actually had receipts of $44,982. She also had gross receipts of more than $122,000 from her trucking company, although she reported only $6,000.

Ultimately, Gray knew when she signed the 2008 Individual Tax Return 1040 form that the information she had provided was false.

In addition to spending 30 days in prison, Gray is required to pay restitution of $102,899 as ordered by U.S. District Judge Paul D. Borman.

Acting Special Agent in Charge Jarod Koopman of the IRS – Criminal Investigation unit said in a release that Gray’s actions were an affront to other business owners and taxpayers who are honest in filing their federal income taxes. He also said that her attempt undermines the tax system, and that the IRS – Criminal Investigation will continue the aggressive pursuit of others who believe they can commit tax fraud and get away with it.

August 18, 2014

Clear Example of Why People Should Not Drive After Having Consumed Alcohol

by Scott Grabel

Most people who choose to drive in an intoxicated state (even though they probably don’t think they are intoxicated) believe they are perfectly alert and capable. Even a couple of alcoholic drinks can impair your ability to think clearly and react swiftly. Most individuals believe they are “fine” to drive, that they will not get caught, everything will be okay. While that may be true in most cases, here is one recent example of what can happen when you choose to drive while drunk.

On Saturday, August 16, a Hampton Bays man was arrested in the early morning hours after police pulled him over for a traffic infraction – one of his headlights was not operating. This led to the man, 23-year-old Jack Formica, being arrested and charged with drunk driving. He was taken to the Southampton police headquarters where he would be held until his arraignment.

Did Formica know the headlight was out? Maybe not. Still, regardless of the condition of your vehicle or whether it is in good working order, you should never get behind the wheel whether you believe you are intoxicated or not. What would happen if you became involved in an accident that was not your fault, for example if you were rear-ended at a stoplight? Police would detect the odor of alcohol or notice red eyes, slurring, or other indicators of intoxication, and you would likely be charged with DUI.

If this had happened in Michigan, the offender would be facing serious consequences if found guilty of driving while under the influence, even if it was his first offense. Jail time, steep fines, and driver’s license suspension are a few of the penalties individuals face when convicted of DUI in Michigan. With each subsequent offense, the criminal penalties become harsher; in fact, a third offense is a felony, and will result in driver’s license revocation.

August 15, 2014

Number of Driver’s License Suspensions for Child Support Evasion at Record High in Cincinnati

by Scott Grabel

According to an article at Cincinnati.com, more than a quarter of the 85,000 parents with child support cases cannot drive now because their driver’s licenses have been suspended. In Hamilton County, it is reported that 23,541 licenses have been suspended due to non-payment of back child support. This is a record high, according to the article.

Moira Weir, Director of the Department of Jobs and Family Services, said that this is a last resort in an attempt to get parents’ attention, and get them paying the child support they owe.

Suspensions over the past five years have increased by 50%, partially due to the department becoming more efficient when it comes to tracking down parents who owe child support, according to spokesmen for the department Brian Gregg. Another reason for the increase is that the department has lowered the threshold from not paying the full child support amount for a 90 day period, to not paying half of amount due for 90 days.

In the state of Michigan, an individual’s license may be suspended for failure to pay child support. However, the primary reason that Michigan residents have their driver’s licenses suspended or revoked is due to DUI convictions. Driving under the influence may involve alcohol or drugs, as either can impair a motorist’s ability to safely operate a vehicle, putting his or her own life at risk as well as others on the roadways.

A license may be suspended for 30 days or longer, depending on the seriousness of the offense. In most cases, the person’s license is fully restored once the suspension period has passed. However, many people cannot make it for 30 days, 90 days, or longer without the ability to drive because of work, school, and other reasons. In these circumstances, you may want to get a restricted license that will allow you to drive only to and from specific destinations such as work.

A revoked license is a much more serious issue; in fact, an individual’s license may be revoked for life. In any case, having a suspended or revoked license restored usually requires a hearing before the DLAD, or Driver’s License Appeal Division of the Secretary of State’s office. These hearings are far from easy to win, and truthfully, quite difficult and complex.

August 14, 2014

Defendant in Detroit Mortgage Fraud Conspiracy Pleads Guilty to Conspiracy to Commit Bank Fraud

by Scott Grabel

In July of 2013, seven individuals were indicted for the roles they played in a Detroit mortgage fraud operation. Those who were indicted by a federal grand jury in the Eastern District Court of Michigan included Peter Allen, Suhail Hallak, Al Karana, Wasseem Shamoun, Joey Murad, Jeffrey Najor, and Jason Najor. The defendants were alleged to have used fraudulent information for the purpose of obtaining mortgage loans from banks and lending institutions beginning in January of 2006, and continuing until December of 2008.

It was announced by the Department of Justice on August 12, 2014 that Wasseem Shamoun has pleaded guilty to conspiracy to commit bank fraud. Shamoun pleaded guilty in the U.S. District Court for the Eastern District of Michigan. According to the July 2013 indictment, the scheme resulted in area banks and financial institutions paying out fraudulent mortgage loan funds that totaled approximately $10 million.

Five of the seven defendants were charged with 20 counts of bank fraud each, including Shamoun. Several agencies assisted in the investigation including the DEA (Drug Enforcement Administration), the IRS – Criminal Investigation, and the FBI. According to the release issued by the Department of Justice, Shamoun was personally responsible for a loss of approximately $394,000 to local financial institutions.

Shamoun and his co-defendants are said to have devised a scheme in which property was purchased in amounts ranging from $5,000 to $40,000 per home. The defendants then recruited straw buyers who would be paid a fee to submit fraudulent home mortgage loan applications. The prices paid to the defendants by straw buyers for single family homes ranged from $90,000 to $120,000 per home, with the defendants paying themselves $10,000 to $50,000 commissions.

Shamoun is scheduled to be sentenced on December 2, and faces a $1 million fine and statutory maximum prison term of 30 years for his role in the conspiracy. Continue reading

August 13, 2014

Alabama Woman Appeals Conviction for Murder of Mother in 2010

by Scott Grabel

In Booneville, MS in 2010, then 48-year-old Rebecca Jones allegedly killed her mother by shooting her twice, once in the arm, and once in the stomach. Jones maintains that her mother, Jane Jones, and herself were involved in a struggle over the gun when it fired accidentally. Rebecca Jones went on trial for the alleged murder in October of 2012, and was found guilty in 2013. She was sentenced to life in prison.

Jones has recently appealed her conviction. Earlier this week, the Mississippi Supreme Court was hearing oral arguments regarding the death of Jane Jones. Rebecca Jones lives in Lexington, Alabama and claims that she had come to Booneville to visit her mother and a friend when the shooting occurred. Rebecca Jones did state that she “got something off her chest” during her visit with her mother. While she claims a struggle over the gun, prosecutors argue there was no evidence of a struggle.

According to Prentiss County Sheriff Randy Tolar, a .38-caliber pistol that belonged to Rebecca Jones was found at the scene of the struggle. Jane Jones died later from the gunshot wounds at an area hospital. News reports indicate that Jane Jones called 911 after being shot, and Rebecca Jones called her boyfriend. Authorities claim that Rebecca did not attempt to give Jane Jones any aid.

Jane Jones was 66 years old when she died.

Michigan criminal appeals attorneys know that without very compelling evidence, it is not likely the Mississippi Supreme Court will overturn Jones’s conviction. Winning an appeal, particularly one in connection with a crime as serious as murder, is not a simple process. The appeals process is not a second trial, but a review by a higher court of the initial trial. The appeals court panel typically reviews evidence, documents, testimony, and other elements of the original trial, looking for errors or violations of the defendant’s rights, and more.