Guilty Plea Entered in Oklahoma Embezzlement Case
As expected, the former auditor for the Commissioners of the Land Office has reached a plea agreement just days before his Oklahoma embezzlement trial was scheduled to begin. Roger Q. Melson, Jr., who was accused of embezzling nearly $1.2 million from the Oklahoma Land Office, pleaded guilty Friday to 174 counts of embezzlement. His trial was scheduled to begin today, August 30.
According to Melson's Oklahoma County white collar crime defense attorney, the embezzlement scheme was hatched in an attempt to pay gambling debts fueled by the defendant's gambling addiction. Melson was accused of creating and registering a fraudulent entity called the Commissioner of the Land Office and opening a bank account for the false organization. He would then intercept checks for the Land Office from the mail room and cash them for his personal use.
Melson is scheduled to be sentenced on November 9. Under statutes pertaining to embezzlement and fraud in Oklahoma, embezzlement of over $500 is a felony, punishable by restitution, fines of up to $10,000, and a maximum of 10 years in prison.
As a result of the scale of this embezzlement case, Governor Brad Henry signed House Bill 3026, which restructured the financial workings of the Commissioners of the Land Office to try to prevent further financial loss. Payments to the Land Office are now processed directly at a bank.
White collar crime in Oklahoma includes embezzlement, fraud, and certain computer crimes, such as internet fraud and online credit fraud. For those who suspect they may be involved in illegal commercial activity, the first step in protecting themselves from prosecution is to immediately cease that activity. Next, individuals who may have had a part in white collar crime should consult an Oklahoma defense attorney for an evaluation of their case. An experienced white collar crime defense lawyer can help you understand your options if charged and can negotiate with prosecutors for the best possible outcome to your case.
Oklahoma Couple Charged with Fraud for Collecting Welfare on Missing Son
An Oklahoma couple has been charged with fraud after officials discovered that they were collecting welfare payments on their adopted son, who has been missing for more than 10 years.
Doug and Valerie Herrman were arrested and charged with theft. They are accused of accepting $52,800 in welfare payments to which they were not entitled. Their adopted son, Adam Herrman, vanished in 1999, but the Herrmans never reported him missing. Authorities did not even become aware of Adam's disappearance until 2008, when his adoptive sister notified authorities. Doug and Valerie Herrman maintain their son, 11 years old at the time, ran away after his mother hit him with a belt. They are considered "persons of interest" in his disappearance.
Meanwhile, the Herrman's continued to accept government assistance for Adam's care for more than ten years after he was last seen. The Herrmans falsely claimed Adam as a dependent on their tax returns, continued to collect adoption subsidies after his disappearance, and failed to notify authorities that the child was no longer living in their home. Additionally, neighbors say that the Herrmans collected money from the state after a report determined that Adam had special needs. At this time, the Herrmans do not face fraud charges in Oklahoma. Doug and Valerie Herrman are charged in a neighboring state and are not defended by Oklahoma criminal defense lawyers, but by lawyers in their home state.
The Herrmans' attorneys claim that their clients deny any wrongdoing. The criminal defense lawyers for Valerie Herrman say that both Herrmans intend to plead not guilty to the charges and to "vigorously seek the dismissal" of fraud charges.
In the meantime, police continue to investigate Adam Herrman's disappearance. Prosecutors hope to have homicide charges filed by the end of the year. Authorities searched the mobile home park where the Hermanns were living when Adam was last seen, but no body has been discovered.
Doug Herrman's criminal defense lawyer would not comment on the disappearance, saying he would focus only on the current charges.
Unrelated Schemes Result in Oklahoma Fraud Charges for Two Dell Employees
Two Dell employees have been charged with computer fraud in Oklahoma County District Court after each was alleged to have defrauded the computer company out of over $133,000 using separate and unrelated fraud schemes. One employee set up fraudulent customer accounts to obtain equipment and hardware for pennies on the dollar; another gave unauthorized discounts to family and friends.
In the first case, Ryan Matthew Wells, 27, is accused of creating fabricated customer accounts using his relatives' names. He then allegedly manipulated the prices of items on 59 fraudulent orders. In one case, he paid only 34 cents for five Dell projectors valued at $1,961.45. Wells reportedly told police that he later sold the items through classified ads on Craigslist and eBay, using the profits to pay his student loans. Wells allegedly defrauded Dell out of $113,900 as a result of this scheme. He is charged with ten counts of computer fraud.
In the second case, Phillip Valentine, 28, is accused of providing his family and friends with unauthorized discounts on Dell merchandise, giving one friend a discount of $500 off a camera lens. The total value of unauthorized discounts in Valentine's scheme is approximated at nearly $20,000. Valentine has been charged with two counts of Oklahoma computer fraud.
In Oklahoma, fraud is a white collar crime, or a crime connected to a business or commercial enterprise. White collar crimes are often investigated long before the suspect or perpetrator is even aware that someone has become suspicious of his or her actions. If someone has been accused of fraud or embezzlement, the first step is seeking counsel from an Oklahoma white collar defense attorney experienced in defending fraud, embezzlement, computer crimes, and other white collar criminal investigations.
Oklahoma Mayor Receives DUI Sentence and Faces Embezzlement Trial
The mayor of Eufaula, Oklahoma, appeared before two judges last week as a result of a DUI arrest and embezzlement allegations. In the first appearance, Mayor Dean Smith pleaded guilty to charges stemming from his DUI arrest, including misdemeanor charges of driving under the influence, transporting an open container of alcohol, and failing to obey a traffic signal. Smith's Oklahoma DUI lawyer did not reach a deal with prosecutors in exchange for the guilty plea, and Smith was given a one-year deferred sentence and ordered to undergo drug and alcohol assessments and pay a $900 fine.
In Smith's second appearance before a judge later the same day, he was ordered to stand trial on four felony counts of embezzlement by a public officer. The charges stem from allegations that Mayor Smith used his position as a city official to obtain about $200 in city money. Allegedly, Smith used a city credit card to purchase gasoline and was later reimbursed for the purchases.
One day after embezzlement charges were filed against him, Mayor Smith suspended Eufaula Police Chief Don Murray. Smith says that disciplinary action against the police chief was unrelated to the embezzlement investigation. He later asked the city council to review Murray's employment, and Murray was reinstated.
While embezzlement of property valuing less than $500 is generally a misdemeanor under Oklahoma embezzlement law, the statutes make special provisions for embezzlement by public officials. Misdemeanor embezzlement is punishable by up to one year in jail and/or a $1,000 fine. Embezzlement by a public officer, however, is a felony. If convicted, Mayor Smith faces a minimum one year sentence, fines totaling triple the amount embezzled, and restitution. Smith's Oklahoma white collar crime attorneys will be ready to defend him at trial on July 1.
Oklahoma City Woman Pleads Guilty to Mail Fraud and Tax Evasion
An Oklahoma City woman charged with embezzling over a million dollars from the local car dealership with whom she was formerly employed pleaded guilty earlier this month to mail fraud and tax evasion.
Debra A. Minshall, also known as Debra Alzubi, was indicted in January on charges of taking money from City Chevrolet for the purposes of paying off her personal credit card debt. According to prosecutors, Minshall wrote check's on the dealership's account and sent them to her own bank to make payments on her credit cards. The indictment alleges that she disguised the checks as lien payments for vehicles that either did not exist, did not require payment, or whose liens were held by other banks. In addition to the alleged embezzlement and mail fraud, Minshall is accused of tax evasion for failing to report over $200,000 in taxable income for the tax years 2006-2008.
While Minshall's sentencing is still a few months away, she faces a possible sentence of a maximum of 20 years in prison and a $250,000 fine. Additionally, as part of her plea agreement, she must forfeit any profit from her fraud and must pay restitution to her former employer, City Chevrolet.
An earlier post details the possible consequences of Oklahoma embezzlement, which generally include fines, restitution, and jail time. Mail fraud is a federal offense in which the United States Postal Service is used in the commission of the attempt to illegally obtain money. In the case described above, Minshall mailed the fraudulent checks to her bank, which added mail fraud to her list of charges.
If you are charged with mail fraud, embezzlement, tax evasion, or other white collar crime in Oklahoma, contact a successful Oklahoma white collar defense lawyer as soon as possible. An experienced Oklahoma fraud attorney can help defend you against inaccurate charges or mitigate the circumstances surrounding your arrest if you have, in fact, broken the law. If you believe you may have done something illegal, seek counsel as soon as possible to help preserve and protect your rights.
Two State Employees Accused in Separate Oklahoma Embezzlement Cases
A trial date of August 30 has been set for a former auditor for the Commissioners of the Land Office accused of embezzling $1.16 million dollars. The auditor is accused of intercepting checks sent to the Land Office and using those checks for personal use. According to his Oklahoma white collar crime defense lawyer, the auditor embezzled the funds because of a gambling addiction. He is expected to reach a plea agreement with prosecuting attorneys before the case goes to trial.
The Oklahoma embezzlement case led to Governor Henry's signing of House Bill 3026, which revises operations of the Commissioners of the Land Office. Because the auditor took the checks while working in the mail room of the Land Office, the bill establishes a "lock box," which allows a bank to receive and process the checks for the Land Office.
The former auditor is not the only state official in the spotlight for embezzlement in Oklahoma. A former First Assistant District Attorney in one Oklahoma county was recently indicted on two felony counts of embezzling more than $50,000. The prosecutor is accused of keeping more than $10,000 seized during an arrest and of stealing $40,ooo from the district attorney's office. His Oklahoma embezzlement attorney has filed a motion challenging the indictment, saying that the grand jury contained ineligible members and did not follow procedures, thus improperly obtaining the indictment.
Under Oklahoma embezzlement law, misdemeanor and felony embezzlement occur when a person fraudulently appropriates the personal property of a person or legal entity and uses that property for any purpose not intended or authorized by its owner. The punishment for embezzlement depends on the value of the property or amount of money embezzled.
If the value of the property is less than $500, the defendant, if found guilty, will be convicted of misdemeanor embezzlement and may be sentenced to up to 1 year in jail and a $1000 fine. Embezzlement of $500 or more results in a felony embezzlement charge. Punishments range from 1 year in county jail and a $5000 fine up to 10 years in prison and a $10,000 fine. Those convicted of felony embezzlement in Oklahoma are also ordered to pay restitution to the victim.
If you are accused of embezzlement or misappropriation of funds in Oklahoma City, immediately consult with an experienced OKC white collar defense attorney with a proven record of success who will protect your interests.