According to prosecutors, Krafton accepted deposits for roof repair and replacement on behalf of Oklahoma Roofing and Flooring, Oklahoma Construction Plus, and Liberty Roofing.  However, he is accused of collecting the deposits but never completing any work.  As a result of four incidents in Edmond, Moore, and Oklahoma City, Krafton has been charged with four counts of embezzlement and one count of engaging in a pattern of criminal behavior.

Krafton is accused of accepting deposits totalling $11,997.75 from four customers, but never beginning the work.  In some cases, the customers say that supplies were dropped off, but no work was ever begun.  In one case, the home of a customer paying a deposit of $2,600 was damaged by heavy rain a week after the repairs were to have begun.

Two customers filed suit against Krafton and were awarded a civil judgment, but have yet to receive the award.

The latest Oklahoma embezzlement charges seem to be the continuation of a pattern of fraudulent activity by the roofing contractor.  At the time of his most recent charges, Krafton was serving a total of twenty years in suspended sentences for embezzlement cases in May and June of 2011.

On May 5, 2011, Krafton pleaded guilty in two separate cases to embezzlement and embezzlement by contractor in Cleveland County District Court.  He received a five year suspended sentence for each.  On June 29, 2011, he pleaded guilty in Oklahoma County District Court to obtaining property by trick of deception.  He received a ten year suspended sentence in that case.

A suspended sentence is one in which the sentence is deferred until the completion of a term of probation.  If the defendant successfully complies with the terms of the suspended sentence, the conviction may be thrown out.  However, if the defendant breaks the law during this time, the suspended sentence is revoked, and the defendant must serve the rest of the sentence behind bars.

Facing multiple felony charges for white collar crimes is a serious undertaking.  If you or someone you love has been charged with embezzlement, fraud, or other white collar crime, call the Oklahoma white collar crimes lawyers with Phillips & Bailey in Oklahoma City.

Court records show that Hughes admitted to an investigator with the Oklahoma Office of Juvenile Affairs that she deposited four restitution money orders in the amount of $1,000 each into her personal bank account.  She allegedly told the investigator that she had been having financial difficulty and needed the money to help support her own children.

Patricia Hughes was employed as a juvenile justice specialist with the Frederick agency of the Office of Juvenile Affairs from 2005 until 2011, when she left the agency as part of a voluntary buyout.

Though embezzlement, or misappropriation of funds with which one is entrusted or to which one has access, is sometimes committed out of greed, it is often an action taken by people who find themselves in a desperate financial situation and are looking for a way out.  In Ms. Hughes' case, she claimed to be having financial difficulty and struggling to support her children.  In other cases, overwhelming debt, fear of foreclosure, divorce, or addiction may create financial burdens that leave otherwise law abiding citizens scrambling for a solution.  Though these situations do not justify theft, many people use embezzlement to quickly solve a stressful financial problem.  Often, perpetrators of embezzlement have every intention of paying back the funds they appropriated to their own use; unfortunately for them, they are often caught before they are able to do so.

If you have been accused of embezzlement or fraud, or if you suspect that you are being investigated for potential involvement in an embezzlement scheme, it is important to consult an experienced Oklahoma white collar crime lawyer as quickly as possible.  Whether you have, in fact, embezzled money, or whether you were acting under a supervisor's orders and were unaware that the activity was illegal, a skilled attorney can closely evaluate your case to determine the optimal defense strategy.  By taking a proactive approach, you may be able to mitigate some of the penalties associated with an embezzlement conviction; if you are innocent of the charges, an embezzlement lawyer in Oklahoma can aggressively pursue a dismissal of the charges or an acquittal at trial.

Yesterday, and Oklahoma City woman was charged with two counts of embezzlement after she was accused of directly stealing the deposits of an Edmond convenience store.  Christina M. DeWitt, 38, was charged with embezzlement in Oklahoma County District Court for allegedly twice failing to deposit the receipts of the Circle K convenience store located at 1308 North Bryant Avenue in Edmond.

Store video allegedly shows DeWitt leaving the store with a deposit of $4,255 on March 29, and a deposit of $10,316.89 on March 30.  According to DeWitt's employer, the store manager was supposed to make the deposits and then return to the store to train another employee.  However, the employer says, the deposits were not made, and DeWitt never returned to work.

Under Oklahoma embezzlement law, the penalties for embezzlement vary according to the value of the property or stolen funds.  For example, embezzlement of less than $500 is a misdemeanor punishable by up to one year in jail and a fine of up to $1,000.  However, the greater the value of the embezzled property, the greater the severity of the crime.  In this case, the suspect is accused of stealing more than $14,000.  Under Oklahoma law, theft or embezzlement of property valued between $1,000 and $25,000 is punishable by restitution, a fine of up to $5,000, and a prison sentence of up to five years in a state penitentiary.

What is embezzlement?  What actions constitute embezzlement and contribute to criminal charges?

Embezzlement is defined as "the fraudulent appropriation of funds or property entrusted to one's care but actually owned by someone else."  In other words, if someone is entrusted with the money or property of an individual, business, or organization, and that person takes the money or property for his or her own personal use, then he or she has committed embezzlement.

Examples of embezzlement include:

• An employee of a business, organization, or institution who pockets all or part of the deposits
• A guardian or an executor of a will or estate who has legal access to the funds of another person, living or dead, and misappropriates those funds for personal use or funnels the money into personal accounts
• An employee takes cash from the register or fails to ring up items, pocketing the customer's payment
• An employee adds fictitious names or names of relatives to the company payroll to collect multiple paychecks for phony employees
• A bookkeeper falsifies payments and accounts
• Check kiting
• Falsifying timesheets
• and more.

If you have been charged with embezzlement, are being investigated for embezzlement, or if you suspect that you may be involved in illegal activity, it is important that you cease the questionable action and contact an experienced Oklahoma white collar crime lawyer who can help you determine the best course of action to protect against criminal charges.

While the alleged fraud occurred, the counselor was already serving five years probation for a previous Medicaid fraud conviction.  In 2010, she pleaded guilty to a felony charge of Medicaid fraud, and was sentenced to probation plus nearly $8,000 in restitution.  According to her Oklahoma City fraud lawyer, Yearwood has already promised to pay $34,000 in restitution for the current case.

Medicare fraud and Medicaid fraud are federal white collar crimes.  Such health care fraud occurs most frequently when medical caregivers file fraudulent claims for services not rendered or medical equipment not provided.  Examples include:

• Billing for tests not performed
• Performing unnecessary procedures
• Charging for equipment or supplies that were never ordered
• Billing for new equipment but providing the patient with used equipment
• Billing for high-end equipment but providing the patient with a cheaper alternative
• Code jamming, or inserting false diagnosis codes
• Unbundling services, using multiple codes for services typically billed under an inclusive code
• Up-coding, or using a diagnosis code that indicates the patient experienced complications or needed more extensive medical care
• Patient billing, in which a patient provides his or her Medicare or Medicaid number in return for kickbacks

The Office of Inspector General for the U.S. Department of Health and Human Services is charged with oversight of the Department of Health and Human Services (HHS), which includes Medicare and Medicaid.  When fraud is suspected, the investigation is often launched by the Office of Inspector General (OIG) in conjunction with the Federal Bureau of Investigation (FBI).  Penalties for Medicare fraud and Medicare fraud can be steep and may include prison, restitution, and a ban from participating in HHS programs.

If you are being investigated for health care fraud, it is important that you contact an experienced Oklahoma City white collar crimes lawyer as soon as possible.  Your attorney can help protect your rights during the investigation and can help you take a proactive approach to your defense.

The FBI website features a section dedicated to federal white collar crimes.  Within the white collar crimes section of the website, the FBI briefly defines crimes such as fraud, embezzlement, money laundering, and anti-trust violations.   Fraud, in its briefest sense, is simply misrepresentation for the purpose of profit.  However, there are virtually infinite ways in which fraud manifests itself:  insurance fraud, bank fraud, corporate fraud, health care fraud, mortgage fraud . . . the list is almost endless.  Two common fraud schemes described by the FBI include Ponzi schemes and pyramid schemes.

The Ponzi scheme is named for Charles Ponzi, a con artist in the early 20th century who promised investors a return of double their initial investment in only 90 days.  In a Ponzi scheme, the perpetrator of the scheme pays returns to early investors out of the investments of later investors.  The scheme collapses when either the perpetrator absconds with the "investments," or when there are not enough new investors to continue to fund the scheme.  Though Charles Ponzi was not the first to perpetrate such a scheme, his name became synonymous with this type of fraud because of the magnitude of his investment scheme.  When Ponzi's scheme fell apart in 1920, his investors lost $20 million dollars--the modern equivalent of $225 million.  He also brought down five banks in the wake of his fraud.

The biggest Ponzi scheme in recent history was perpetrated by Bernie Madoff.  In 2008, Madoff was arrested for securities fraud.  It was later determined that losses from Madoff's investment scheme totaled $65 million.  In June 2009, he was sentenced to 150 years in federal prison.

Similar to the Ponzi scheme is a type of fraud called a pyramid scheme.  The pyramid scheme, like the Ponzi scheme, pays returns to early investors from the investments of subsequent investors.  However, a pyramid scheme generally involves the sale of some product or franchise.  However, little to no money is earned from the sale of the products; rather, money is only earned when a member enrolls additional members into the program.  A pyramid scheme is a non-sustainable business model.  Just as a Ponzi scheme falls apart when there are no more investors, a pyramid scheme collapses when no one else buys into the business model.

Pyramid schemes are often referred to as franchise fraud, and consumers are cautioned to be wary of multi-level marketing (MLM) businesses, not all of which are legitimate.  Pyramid schemes are generally investigated by the FBI or the Federal Trade Commission (FTC).

It is important for investors to always do their research before investing in any business, franchise, or other investment opportunity.  As the adage goes, "If it sounds too good to be true, it probably is."  Being caught up in a fraud scheme can cause you to lose your investments, and it may also lead to white collar criminal charges if it is determined that you were a part of bilking others out of their assets.  Before offering investment opportunities to another, it is critical that you understand the legal issues regarding investments and investment fraud to ensure that you do not inadvertently commit a crime.  If you have been charged with investment fraud, or if you have been accused of perpetuating a Ponzi scheme or pyramid scheme, speak with a federal white collar crime lawyer in Oklahoma City as soon as possible.

The Oklahoma fraud attorneys with Phillips & Bailey are experienced trial lawyers who have successfully represented clients accused of investment fraud, mortgage fraud, Medicare fraud, identity theft, and other white collar offenses in Oklahoma City.

• Mail fraud
• Wire fraud
• Mortgage fraud
• Bankruptcy fraud
• Medicare fraud
• Medicaid fraud
• Insurance fraud
• Tax fraud

Falsifying information, giving false information, or withholding information on applications for benefits or financial aid is illegal.  Whether one conceals assets in filing bankruptcy or files false medical claims to receive insurance compensation, fraud is prosecuted aggressively and often by the federal government rather than state government.  Those charged with fraud in U.S. District Court should find an Oklahoma fraud lawyer who is also an experienced federal criminal defense attorney.

Two Oklahoma businessmen, formerly of Norman, Oklahoma, have learned over the last couple of years just how seriously the federal government takes fraud.  Larry C. Shaver, 65, and Lewis Patrick Colbert, 65, along with colleague Howard Michael Wampler, were indicted by a Grand Jury in May 2009 on charges of fraud and conspiracy to commit fraud.  Shaver and Colbert, the CEO and CFO of McSha Properties, respectively, were sentenced last week after they pleaded guilty in September.  Shaver has been sentenced to 30 months in prison and has paid more than a million dollars in restitution United States Treasury.  Colbert has been sentenced to 24 months and has paid more than $330,000 in restitution.

Shaver pleaded guilty to conspiracy and to knowingly depositing crime proceeds.  Colbert pleaded guilty to conspiracy.  In the fraud scheme, Shaver and Colbert, along with Wampler, McSha's Vice President in Charge of Construction, are alleged to have created millions of dollars in false invoicing to inflate tax credits for low-income housing.  They are accused of using the credits to obtain financing when was then misappropriated to personal use.

White collar crimes have a notoriously high conviction rate in federal courts.  This is often because any investigation into illegal financial dealings is generally carried out by highly specialized federal agencies such as the IRS, the FBI, or the SEC.  When charged with a federal crime, one needs quality legal defense from an Oklahoma white collar crime attorney who is experienced in federal court and is fully equipped to take on the United States District Attorney prosecuting the case and to challenge the evidence obtained in a federal investigation.

Though it is estimated that 17% of all individual tax returns have some error, serious cases of intentional fraud are prosecuted heavily.  Tax evasion or tax fraud can lead to fines, tax penalties, accrued interest, liens, bank levies, wage garnishment, and seizure of assets.  Tax crimes are also punishable by lengthy prison sentences.

A government study revealed that the majority of tax fraud--up to 75%--is committed by individual tax payers rather than businesses and corporations.  Individual tax fraud is committed primarily by middle income earners.

However, tax evasion reaches headlines when a large corporation or, even more attention-getting, a celebrity is accused.  Some of the most famous people accused of tax fraud include:

• Martha Stewart - Did not pay $220,000 in taxes on a Hamptons vacation home
• Wesley Snipes - Claimed he was a "nonresident alien," despite being born in Florida; sentenced to three years in jail and required to pay $17 million in back taxes
• Willie Nelson - Faced $16.7 million in back taxes; when his assets were seized and auctioned, many fans bought the items and returned them to the beloved country singer
• Nicholas Cage - Accumulated $12 million in back taxes and the foreclosure of his multi-million dollar Las Vegas home; Cage blamed his financial manager
• Joe Francis - The producer of  Girls Gone Wild was accused of taking $20 million in fraudulent deductions

Other famous people accused of tax evasion include Judy Garland, Al Capone, and--to a lesser degree--"Survivor" Richard Hatch, who didn't report his $1 million prize, income earned as a radio host, or profits from real estate rental.

Failing to report income and assets is just one method for attempting to avoid paying taxes.  Tax fraud can take other forms as well, such as when a business keeps two sets of books, doesn't keep books at all, or manufactures or alters checks and receipts.

Tax fraud investigations are conducted by government agencies such as the Internal Revenue Service.  Backed by the full force of the government, these investigations are usually quite thorough, and the individual suspected may not even realize he or she is under investigation until he or she is arrested or charged.  For white collar defense in Oklahoma,  contact a fraud lawyer who is experienced at handling Federal fraud cases.

What is prescription fraud?  Prescription fraud refers to prescribing or obtaining prescription drugs that are not medically necessary.  There are several ways in which prescriptions fraud may be perpetrated:

• Using a stolen physician's prescription pad
• Altering a legitimate prescription in order to receive an increased quantity of a prescribed drug
• Forging prescriptions
• Calling in one's own prescriptions and providing a personal number for callback information
• "Doctor shopping," or visiting several doctors to receive prescriptions unbeknownst to the other physician

Furthermore, an unscrupulous physician may sell unneeded prescriptions to "patients" looking to sell or abuse the prescription drugs.

Prescription fraud in Oklahoma is a serious concern.  Some studies show that 2-4% of the national population abuses prescription drugs.  The drugs most commonly purchased or abused in prescription fraud cases include Vicodin, Valium, Xanax, Oxycontin, and morphine.  Benzodiazepines, such as Xanax and Valium, are often used legally to treat anxiety and also work as sedatives and muscle relaxers.  Oxycontin, Vicodin, and morphine are powerful and highly addictive painkillers.

Prescription fraud is a felony drug crime in Oklahoma and may be charged as a Federal offense.  Health care providers who illegally provide prescriptions may not only face jail time and fines, but they are likely to lose their licenses to practice medicine and receive sanctions by the American Medical Association.

The Oklahoma Anti-Drug Diversion Act implemented the Oklahoma Prescription Monitoring Program (PMP), overseen by the Oklahoma Bureau of Narcotics and Dangerous Drugs, in an effort to combat prescription drug abuse and prescription fraud.

If you are accused of involvement in prescription fraud, it is important that you contact an experienced Oklahoma criminal lawyer as soon as possible to help with your defense.  Your attorney can thoroughly evaluate your case for the best defense strategy, whether that entails negotiating a reduced charge or sentence, defending your innocence, or challenging police procedure to demonstrate illegal search and seizure.

For more information about prescription fraud defense, call Phillips and Bailey to speak with an experienced criminal defense attorney in Oklahoma City.

• Medicare Fraud
• Medicaid Fraud
• Insurance Fraud
• Tax Fraud
• Credit Card Fraud
• Wire Fraud
• Mail Fraud
• Bank Fraud
• Welfare Fraud
• Securities Fraud
• Computer Fraud
• Telemarketing Fraud
• Worker's Compensation Fraud
• Identity Theft
• Counterfeiting
• Forgery

Though this is a long list of fraudulent activities, it is merely the tip of the iceberg when dealing with the various types of white collar crimes, which also include embezzlement, extortion, bribery, blackmail, and more.

Last week saw three cases of fraud in Oklahoma making headlines:

On Thursday, Lewis Colbert, an ex-businessman from Norman, pleaded guilty to conspiracy to commit wire fraud.  Colbert, of McSha Properties, was accused of creating false construction invoices in order to defraud the government out of tax credits.  He pleaded guilty to his role in the scheme, which inflated construction costs for low-income housing projects that qualified for tax credits.  The scheme is estimated to have netted the company between 2.5 and 7 million dollars.  Colbert is scheduled for sentencing December 15.  He faces up to 20 years in prison.

Also on Thursday, the state's attorney general's office stated that two people were charged in separate incidents with worker's compensation fraud in Oklahoma.

Raul Obed Orozco, 50, was charged with three counts of worker's compensation fraud.  The Perry man is alleged to have sought medical treatment for three separate fraudulent work injury claims in 2009, 2010, and 2011.

Tulsa's Zeina Khatib, 49, has been charged with one count of worker's compensation fraud.  She claims to have sustained injuries during a fall at work in March 2010.  Khatib claims that she has been unable to work as a result of her numerous injuries, and in a deposition, said that she has not returned to work since her injuries were sustained in a workplace accident.  However, investigators allege that they have witnessed Khatib working.

By misrepresenting expenses or the severity of one's injuries, one commits fraud.  Fraud is almost always committed with the intent of financial gain; however, it is a criminal offense that could backfire in the long run, completely eliminating any gain and saddling the defendant with a lengthy jail sentence and a criminal record.  If you have been charged with fraud, if you are being investigated for fraud, or if you even suspect that you might be under suspicion of fraud, it is in your best interest to immediately cease the questionable activity and contact an experienced Oklahoma City white collar crime defense attorney.