Well over a year ago, I along with others were writing profusely about mortgage fraud and the severe lack of business ethics that seemed rampant in the industry. It almost seemed like "money for nothing" and the house was free. Now, as we approach the time for our general election, things could not be worse. There is no doubt that this will be a disaster for the GOP when the election results come in.

October 23, 2008, an indictment was handed down in Brooklyn federal court charging OSMOND DECOTEAU with wire fraud for masterminding a scheme to defraud mortgage lenders and banks of more than $20 million in connection with the sale of several properties located in Brooklyn and Florida.

According to the indictment: DECOTEAU recruited straw purchasers for properties ... Read More »

A Kannapolis physician assistant Faces Up to Ten Years in federal prison - what for? Is the need to achieve wealth or increase material possessions so great that it is worth one's freedom? That is the very real question that I had to face when some 13 years ago I took my first steps into federal prison. Now another will take those steps soon.

CHRISTOPHER J. CAGGIANO, president of CANNON FAMILY MEDICINE, INC.- Kannapolis, North Carolina - plead guilty to four counts of health care fraud.

In July 2006, the N.C. Medical Board suspended Caggiano’s license to work as a physician assistant for two years. But the suspension was to be stayed on Jan. 1, 2007, and Caggiano was to remain on probation for the duration of the suspension. Caggiano was accused of or ... Read More »

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Chuck Gallagher - Business Ethics and Fraud Prevention Expert

Every choice has a consequence. As a business ethics and white collar crime speaker, I address groups every day who elect to be reminded about this fact. In this case, Stephen Lee Turpin, of Pearland, Texas has been sentenced to the statutory maximum penalty for his involvement in multiple “Ponzi” schemes which resulted in over $2 million in losses to several individuals.

Turpin, 53, was sentenced to 60 months in federal prison, the statutory maximum penalty, for conspiring to commit wire fraud and mail fraud. Turpin was convicted in May 2007 after pleading guilty to the charge.

In the scam resulting in the highest loss to ... Read More »

As the time of decision grew near, the only thing that Ted Russell Schwartz Murray could likely have wished for is another storm.

The trial which began on Sept. 8, 2008, was interrupted by Hurricane Ike, and concluded with the return of the guilty verdicts yesterday. A Houston federal jury has convicted Ted Russell Schwartz Murray, a lawyer licensed in Texas and Florida, of conspiracy to commit mail fraud and securities fraud in connection with the operation of Money Mortgage Corporation of America, a subsidiary of Premiere Holdings, LP, a real estate investment program. Murray was also convicted Murray of making a False Statement on Tax Returns for the years 1999 and 2000.

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PRESS RELEASE:

In the economic climate we live in today, the probability of increased pressure for unethical practices and internal fraud is increasing. Unraveling fraud schemes can sometimes feel like trying to figure out a magician's tricks. The North Carolina Association of CPA's is sponsoring the 2008 Fraud Conference entitled: "Don't Be Fooled."

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Business ethics training! Across the nation I can hear people saying, "Yea, those people on Wall Street and in Washington need a good dose of that." Or, more than likely, in many companies, I hear a big "yawn."

People, especially now, are sensitive to the need for ethical action. However, ethical belief and action does not generally mean a commitment to teaching ethics. In fact, in a national survey, most companies (there are notable exceptions) do very little to teach and promote ethics. So often, as a business ethics speaker, I hear people recite the statement, "There is no such thing as business ethics, only ethical people." Well, that statement is all fine and good, but the reality is - businesses do have a culture and if e ... Read More »

It's easy to become cynical when all you hear in the media is bad news. But not all news is bad. In a recent CNN article there was some refreshing comments from small, but healthy, banks. They were making loans and, for the most part, it was business as usual.

Here are some comments from the article:

Conservative lending practices seem to be a common denominator among banks that have remained strong and stable during the current banking crisis, and those banks are still making loans.

My how times change. Just a few short years ago the economy could do no wrong. People commented about the large movement in the housing market "caused" by the Baby Boomers. Baby Boomers were buying second homes, downsizing, and making room for the next wave of new home buyers - or so we thought. But hind sight is 20/20.

Perhaps less of that was true that what we thought. Looking back there were many artificial factors in play that were, in my opinion, a clear violation of what most people would say are sound business ethics. As a business ethics speaker, I know as I consult with companies frequently who want to know how to get out of some of the messes that have been created.

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Some one following this case, which I reported on back in February 2008, provided me with a copy of the plea agreement. If you would like a complete copy e-mail me at chuck@chuckgallagher.com.

As a business ethics and fraud prevention speaker, I have had several folks ask just what the punishment would be for such a crime. Below are reprints from the plea agreement. Keep in mind, the judge is not bound by the agreement, so he/she would have the authority to make a decision other than what the US Attorney and LaMarch have agreed to.

The relevant provision are as follows:

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Chuck Gallagher - Business Ethics and Fraud Prevention Expert

MARCELLUS THOMAS, 44, of High Point, North Carolina, was sentenced to 56 months imprisonment on federal income tax charges on September 23, 2008.  There is no doubt when THOMAS reports he will find that his crime was not worth the short term benefit he received.

Crime does not pa ... Read More »