The use of a stolen or misplaced credit card is credit card fraud and may be prosecuted under federal identity theft and fraud statutes.  Credit card fraud committed by stolen credit card usually entails making large purchases before the credit card holder is aware that the card is missing.

In recent times, credit card fraud is detected by financial institutions by flagging suspicious transactions, placing temporary holds on accounts, contacting cardholders and adding security credentials to prevent fraud through online transactions.  Additionally, suspicious transactions and lost cards can be reported through a hotline to the financial institution.

The punishment for using someone else’s credit card is found in US Code, Title 18, Section 1029 and other statutes. If found guilty, the defendant will face prison time and restitution. There is a two year mandatory minimum for aggravated identity theft.

The range in sentencing for credit card fraud accounts for the nature of the crime, amount of financial damage and other variable factors.  This can also work in your favor when you have a New York criminal defense lawyer to organize your defense.

To set up an immediate consultation, contact us at (212) 577 6677 so that you may learn about your potential legal options.

Yes. Selling Virginia taxed cigarettes is considered to be cigarette smuggling in New York, if the carton of cigarettes do not possess a New York State tax stamp. In order to sell a carton of cigarettes in New York City, the carton must possess a New York State tax stamp otherwise; this is interpreted to be evading New York state and local taxes.

Higher New York State Cigarette Taxes = Lower Profit To Sales

In recent news, three individuals were arrested for charges engaging in the sale of untaxed cigarettes. Despite having cartons of cigarettes taxed by Virginia, which ranges from 15 to 65 cents per carton depending on the county, they were not taxed in New York and the alleged offenders were selling them at New York City prices.

Like many tax evasion cases, New York State takes such actions very seriously. Cigarette smuggling is defined as a violation of New York State Tax Law 1814, also known as the Cigarette and Tobacco Products Tax.

Once the investigation on cigarette smuggling is instigated, detectives from the District Attorney’s Crimes Against Revenue Unit will not hesitate to make the arrest once sufficient evidence is gathered.

Cigarette smuggling carries serious consequences in New York State, such as extensively long jail time and hefty fines in addition to reparations for lost taxes. It is therefore, essential to contact an experienced and skillful criminal defense attorney at the minute you become aware of an investigation. This will not only minimize your risk of self-incrimination but it will also optimize your defense.

If you are currently being investigated or arrested for violating the New York State Tax 1814, call our office at (212) 577-6677 for professional legal advice.

Steven Mandala, a former New York City Merrill Lynch stockbroker has been indicted in Manhattan Criminal Court on felony charges of grand larceny, money laundering, criminal possession of a forged instrument, falsifying business records, and identity theft for allegedly stealing around $780,000 from Merrill Lynch.

The allegations are based on a bizarre set of facts. Mandala applied for employment with Merrill Lynch and told them that he was a high-earning partner at another firm managing $300,000 million of assets and making 1,5 million in revenue, of which he received a compensation of $765,000.  According to the indictment, he produced false pay stubs, tax returns, and W-2 forms to prove this information. As the result, Merrill Lynch relied on this misrepresentation and hired Mandala with a salary of $100,000. Additionally, Merrill lynch gave Mandalla a loan of $780,000, which Mandala was to pay back within 8 years. This is normal practice in the securities industry and it is used to lure in new high earning traders and brokers.

The criminal investigation began when Mandala quit after 2 months but not before depositing the check, then buying a Ferrari. Within the 2 months of employment, he was frequently absent and failed to bring in any significant clients. When his work place was being cleared by Merrill Lynch, they discovered credit cards in Mandala’s girlfriend’s father, whose identity Mandala allegedly had stolen. Tens of thousands of dollars had been charged on the credit cards before the accounts went into collection.

If convicted, Mandala faces long prison time.

Harry Dorvilier, the owner of nursing agency Harry Nurses Registry, Inc., in Queens, New York City, was charged for allegedly fraudulently deducting money from employee paychecks purportedly for Workers’ Compensation Insurance.

According to the court documents, Dorvilier deducted $1 per hour from the payroll checks of more than 200 employees and explained the deduction by a non-existing Workers’ Comp regulation. Two things to notice here: first, New York law prohibits employers from charging employees for workers’ compensation insurance and second, Dorvilier had never purchased workers’ comp as required by law. So, the money, around $300,000 ended up in his coffers.

Dorvilier has been charged with Grand Larceny in the third and fourth degree and violating New York State Workers’ Compensation Law Section 31. If convicted, he faces up to 7 years in prison.