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Embezzlement case for Bernard Lawrence

Bernard Lawrence is a renowned American former investment advisor, stock broker, admitted operator of the Ponzi scheme, and the NASDAQ stock market’s non-executive chairman (Kirchner, 2010). In 2009, he was pleaded guilty to about eleven federal crimes and accepted to turning his management business into Ponzi scheme through which he defrauded many investors of large sums of money. Lawrence said he established the Ponzi scheme during 1990’s but according to federal investigators, the fraud started during the 1970’s (Kirchner, 2010). About sixty-five billion dollars which included fabricated gains were missing from the accounts of clients.

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He used the technique of stealing money from old investors and repaying it with the new investors’ earned capital. Lawrence could as well use the future investors’ capital to repay the money he would still from the new investors and therefore, none of the investors would obtain full remuneration from the Ponzi scheme. The court-appointed investigator found that the actual losses to the Ponzi scheme’s investors amounted to eighteen billion dollars. He was sentenced to the maximum allowed prison term of 150 years since June 29, 2009 (Kirchner, 2010).

Therefore, the exposure of Lawrence’s Ponzi scheme and the missing of large sums of money proved critical for those people who had invested for many years, as well as some organizations like Yeshiva University that invested operating capital. The Ponzi scheme’s collapse seriously affected stock prices as well hedged fund values in very many sectors (Kirchner, 2010). This was therefore considered a very complex type of embezzlement. It is evident that the offender had a higher socioeconomic because he was the owner of the wealthy Ponzi scheme and that he was a former investment advisor, stock broker, and the NASDAQ stock market’s non-executive chairman.

It is common for embezzlement criminals like Lawrence to be incarcerated for long prison terms so that to scare other individuals who have similar plans of committing crimes. In most cases, embezzlement offenders pay a restitution fee that is given to the victims (Kirchner, 2010). But according to Lawrence’s embezzlement story, his judge postponed the restitution decision because they needed enough time to calculate the exact amount of restitution. Therefore, it will be justified for Lawrence to be incarcerated for many years and fined for compensating the victimized investors (Kirchner, 2010).  

Identity Theft case for Abraham Abdallah          

Abraham Abdallah is a thirty-two years old renowned identity thief in the Internet age. While he was working at a restaurant in a Brooklyn, he allegedly attempted to steal eighty million dollars from the likes of Steven Spielberg, Oprah Winfrey, and other famous and wealthiest individuals such as Warren Buffet, George Soros and Michael Eisner of the United States (Loberg, 2004).  He used Web-enabled mobile phones and virtual voice mail to protest himself from being arrested. Abdallah was convicted of identity theft and other counts of fraud and sentenced to an eleven-year prison term in 2001 (Loberg, 2004).

He committed his identity theft crime from the Brooklyn Heights Public Library where he used computers to gather the publicly available information regarding his victims, for instance birthdays or the maiden names of mothers. Abdallah would select a victim like Michael Bloomberg or George Solos and call up the victim’s bank account. Most of these calls were recorded for future reference. According to the recordings, Abdallah would make himself known to the clerk as the financial advisor of the victim and then ask for the account number which he pretends to have forgotten. During the dialogue with the clerk he could provide the victim’s basic personal information which he had gathered at the library computers (Loberg, 2004).

Abdallah dealt with large financial institutions such as Wells Fargo and Merrill Lynch. No person was suspicious of the identity theft because he was fortunate to talk to a different clerk for each call. For the first two years he accessed about two hundred and seventeen accounts as called up banks in California, New York, and Australia (Loberg, 2004). Abdallah used the accounts he had stolen to order merchandise which were delivered through courier to Manhattan. He stole merchandise that is worth seventy-eight thousand dollars. Abdallah created false accounts by using victim’s information and then attempted to transfer the money from the legitimate accounts to the fraudulent ones which failed to work because the account managers always verified the transactions.

Abdallah was caught on 12 February, 2001 when detectives organized an operation in which they sent a package of tools for manufacturing and magnetizing credit cards to a fake address (Loberg, 2004). On his arrival to receive the package Abdallah was arrested. He was charged on about twelve counts of fraud which included mail fraud, fraud by wire, and committing and conspiracy to commit credit card fraud. However, he was not successful for the fraudulent acts and was incarcerated for the prison term of eleven years on the basis of how much funds he would have acquired from the Operation CEO. Abdallah would have acquired eighty million dollars. The only fraudulent act that when through was the seventy-eight thousand dollars worth of merchandise (Loberg, 2004). It was therefore, justified to incarcerate Abdallah for an eleven years prison term so that to avoid the fraudulent acts from happening again.

White collar crimes are different from other traditional types of crimes because they do not involve physical force even if the offenders acquire large sums of money when once they are successful. Unlike the other traditional types of crimes, the white collar crimes can remain unidentified for a number of days depending on the tricks employed by offenders. The white collar crimes are becoming very many which make it hard to control. However, incarceration of the offenders as well as the payment of restitution money can discourage many individuals who are planning to commit such crimes. Ethical and professional behavior in the workplace is very necessary because it can avoid fraudulent acts. Individuals who observe the ethical and professional standards cannot do harm to other people.

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