Three accused of white collar crime and wire fraud

On behalf of The Marks Law Firm, L.L.C. posted in Fraud on Saturday, December 31, 2011

Multiple people have now been charged in a federal fraud case that involved two out-of-state residents and a third person from St. Louis, Missouri. All three are facing the white collar crimes charges of federal mail and wire fraud. If convicted, they could face hefty financial penalties and substantial time behind bars.

The company the three individuals were employed by was renamed to Guardian Credit Services and Get My Credit Grade. It was unclear from a news report on their case if they were merely employed by the company or if they had managed the company, which is a potentially important difference.

Allegedly, the three collected money upfront for services that they supposedly never performed. All told, they have been accused of collecting $6 million fraudulently. The attorney general’s office contends that customers paid $3,500 in fees for loan modification services. These services purportedly included programs to reduce interest rates, monthly payments or principle balance.

In these tough economic times, there are many companies offering such services, and it is an unfortunate fact that some companies may engage in illegal practices. However, it is also quite often the case that customers were merely unsatisfied with the service that they purchased, which may be considered bad business but would not necessarily be illegal behavior.

Moreover, it may well be that these three men were merely employed by the company. If that is the case, then they may have been duped by their superiors into performing activities that may have been fraudulent. It could also be true that authorities are grasping at straws and are prosecuting men who are innocent in an attempt to convince the public that the authorities are acting proactively.

At the moment, the white collar crime case is proceeding in an out-of-state court and in a federal court based in Missouri. However, the prosecutors have asked for the Missouri suspect to be extradited so that he may face charges out-of-state. Nonetheless, it will be important for all three men to present a strong and meaningful defense. They are granted a constitutional right to a vigorous defense and are entitled to the presumption that they are innocent until proven guilty.

Source: The Southwest Riverside News Network, “Two Orange County men suspected in nationwide $6 million loan scam,” City News Service Staff, Dec. 7, 2011