What Is Insider Trading?

 Posted on January 10, 2019 in White Collar Crime

Even with the widely publicized arrest and later conviction of Martha Stewart for insider trading, many people still are not aware of what this crime entails. Many also think that it is a crime of the affluent or those that have acquired fame, perhaps due to the Stewart scandal in 2003. However, people are charged with insider trading more often than many think. So, what does this crime involve? And what are the penalties associated with it?

Insider Trading Defined

Insider trading is when an individual has a fiduciary duty to another individual, institution, corporation, or other entity and makes an investment decision based on information that is not available the general public. The decision can be made in order to profit from that investment or to avoid losses in others. In the Martha Stewart case, she sold her ImClone stocks in order to avoid a loss. Interestingly, insider trading has only been considered a crime in the past several decades. Early in the twentieth century, the Supreme Court actually called insider trading an advantage of being an executive. After the opulent 1920s, and the subsequent Great Depression, public opinion shifted, and the courts’ did as well. It was at this time that insider trading was no longer allowed, and when the Securities Exchange Act of 1934 was created.

Penalties for Insider Trading

Continue Reading ››

Federal Counterfeiting Crimes Explained

 Posted on December 29, 2018 in Federal Crimes

The term ‘counterfeiting’ can be used to describe any number of fake articles. Counterfeit art or fake commercial items such as designer apparel can all be considered counterfeits. However, these goods are not covered by federal law. So what is the federal crime of counterfeiting? And what are the penalties one may face? Being charged with the federal crime of counterfeiting is very serious. Anyone that has been accused needs to speak to a Chicago federal criminal defense attorney that can give them the best chance of beating the charges.

Federal Counterfeiting Definition

According to the U.S. Code, Title 18, Chapter 25, the federal crime of counterfeiting involves producing, possessing, and using false documents that are used to cheat the government of the United States. These include:

• Currency;
• Securities, such as stock certificates;

Continue Reading ››

What Is a Hate Crime?

 Posted on December 20, 2018 in Hate Crime Statute

According to the FBI, hate crimes in the United States rose by 17 percent in 2018. That makes it the third consecutive year that these numbers have increased. What may be even more troubling is that it has been estimated that less than ten percent of hate crimes in the country actually show up in the FBI’s data. But what exactly is a hate crime? Is it different than hate speech? And what are the penalties? Hate crimes, and their penalties, can be very serious. Anyone charged with a hate crime needs to speak to a federal crimes lawyer in Illinois as soon as possible to give themselves the best chance of success in court.

What Is a Hate Crime?

The FBI classifies a hate crime as an additional crime tied to any other offense. If a person commits murder, arson, vandalism, assault, or any other crime with an added element of bias, it is considered a hate crime. That bias could be based on someone’s religion, sexual orientation, race, disability, or gender. When these crimes are committed, and they have the additional element of bias, it is considered a hate crime. Hate crimes, in the United States, are considered federal crimes. When someone is convicted of a hate crime, they are sentenced to penalties for the original offense they committed. Additional penalties, such as longer sentencing or higher fines, are then added to that original sentence for the hate crime element of the offense.

Difference in Hate Crimes and Hate Speech

Continue Reading ››

Federal Murder Charges

 Posted on December 13, 2018 in Murder

Murder cases are often tried in state court because in general murder is a state crime. However, there are some circumstances where a murder trial will occur in federal court. These instances are spelled out in federal law and are quite specific. Federal prosecutions often have a larger budget and a different set of laws will be in effect. It is important that the accused hire counsel that can mount a strong defense and who fully understands federal laws of evidence and the elements of federal crimes.

Ten Types of Federal Murder Charges

1. Killing of an elected or appointed federal officeholder. Federal charges will result if the victim is a congressman, senator, president, vice president, a cabinet officer (for example Secretary of Defense), or a Supreme Court justice.
2. Killing of a federal judge or law enforcement officer. If the victim is a federal judge or a federal law enforcement officer, the trial will be heard in federal court.

   Continue Reading ››

What Is Embezzlement?

 Posted on December 06, 2018 in White Collar Crime

Embezzlement is a type of white collar crime that comes with serious consequences for those convicted. Embezzlement occurs when someone entrusted with certain property takes that property. For example, a bookkeeper who takes money from her employer may be convicted of embezzlement. Federal prosecutors must prove the following elements to convict someone of embezzlement:

• There was a trust or fiduciary relationship between the accused and the company or government agency;
• The property came into the possession or care of the accused by virtue of his or her employment;
• The accused’s dealings with the property constituted a fraudulent conversion or appropriation of it to his or her own use; and
• The accused acted with the intent to deprive the owner of the use of this property.

Embezzlement is a crime that often takes place over a long period of time. In these cases, the perpetrator will gradually divert small sums of money into his or her bank account, hoping that these amounts will go undetected. U.S. courts have stated that someone accused of embezzlement cannot escape a conviction by arguing that the property would be returned or was returned. Even a temporary taking of the property is illegal.

Embezzlement vs. Larceny

Continue Reading ››

The FBI: Catching Those in Possession of Child Pornography

 Posted on November 29, 2018 in Child Pornography

Child pornography charges or convictions are in the news on a constant basis. The FBI says that the large number of incidents of child pornography is attributable to the Internet, which has made this type of material more readily available. Technology has also made such a crime easier for law enforcement to investigate and prove a case against someone so accused. Many times there is a paper trail for this type of crime that the FBI is able to access. Child pornography charges often result in a conviction. Child pornography investigations are carried out in one of the Bureau’s 56 field offices by Child Exploitation Task Forces that integrate FBI resources with those of other law enforcement agencies, including those at the state and local levels. There are almost 400 law enforcement partner groups that engage in these task forces and are aided by FBI intelligence analysts, victim consultants, and subject matter authorities. Due to the nature of the Internet, many child pornography crimes involve people in other countries. The FBI’s legal attaché offices in more than 60 nations work with these countries on such investigations. Those accused of child pornography are of all backgrounds, and many do not have any sort of criminal history. These crimes often occur on the “dark web,” a place where their true identity can be hidden. Many times friends and family member have no idea that this person takes part in such activities. Those eventually charged with child pornography possession often never suspect that they are being watched by the FBI.

The FBI dedicates such resources because it perceives child pornography to be a huge problem. For example, Tor is an anonymous Internet network on the dark web. Just one website on Tor hosted 1.3 million images of minors being subjected to violent sexual abuse, according to the FBI. In addition, an FBI investigation of one website on Tor had about 200,000 registered users, and 100,000 people had used the website over the course of the 12 days studied.

Continue Reading ››

Thirty Years Ago: First Major Internet Attack

 Posted on November 23, 2018 in Computer Crime

On November 2, 1988, a cyber worm was disseminated on the Internet from a computer at the Massachusetts Institute of Technology. Thirty years ago, the Internet was a different place; there were only 60,000 computers online, most of them at prestigious colleges and universities or research centers. Of those, 6,000 computers were infected over the course of 24 hours. The worm hit computers running a certain version of the Unix operating system. Infected computers began to run very slowly with many vital functions delayed for days. It was hard to ascertain the amount of monetary damages caused. Estimates ranged from $100,000 to millions of dollars. Who was behind this first-of-its-kind attack? A 23-year-old programmer named Robert Tappan Morris from Cornell. Morris hacked into the MIT computer system from Cornell to cover his tracks. Morris maintained that the worm was more of a test and that he surprised himself at how quickly it spread. He tried to issue a statement through a friend with details on how to remove the worm, but ironically, the message could not be disseminated due to the slowness of the Internet for those affected. Federal prosecutors charged Morris with the 1986 Computer Fraud and Abuse Act, and he was the first person found guilty under the law. Morris did not have to go to jail. Instead, he was sentenced to probation, a fine and 400 hours of community service. It is said that the Morris Worm has served as inspiration for generations of computer hackers. Indeed, the weaponization of the internet has become more sophisticated over the last 30 years. As hackers’ attacks have become more potent and the number of Internet users has skyrocketed, the federal government has because more involved in catching hackers and charging them with crimes.

Contact a Chicago, IL Internet Crimes Defense Lawyer

Continue Reading ››

What Are Diversion Programs?

 Posted on November 15, 2018 in Criminal Defense

Not everyone convicted of a crime in Illinois is found guilty and sentenced to jail or prison. Depending on a person’s criminal record and the nature of their offense, there is a chance for some to be sentenced to what Illinois calls a diversion program. These can be for first offenders, young offenders, or those for whom a standard jail sentence would not be recommended. Illinois makes extensive use of these programs for certain types of offenders, especially first-time offenders. Multiple Options Many of the diversion programs available in Illinois as of this writing are aimed specifically at defendants who have never been in trouble with the law before, the most common of which is called court supervision. While court supervision is locally based in counties and cities rather than a statewide program, it is nonetheless an effective way to have a nonviolent offender serve out a sentence instead of consigning them to incarceration. Essentially, court supervision is when one admits culpability for an offense, but entry of a conviction is postponed or delayed. If the person on supervision completes probation successfully (usually a six month or one year period, though every case is different), no conviction is entered and the record is usually expunged. While diversion may be an option upon the conclusion of proceedings, pretrial diversion is also possible. DuPage County has its own program, begun in 2012, which offers some first-time offenders the chance to make amends without sustaining a conviction being entered upon their criminal records, especially some which might otherwise be difficult to expunge. In the DuPage County program, offenders must go before a ‘citizens’ panel,’ which will then make a recommendation as to whether or not the person should go into the program. Upon completion of the program, the offense will be either removed from the person’s record or listed as a lesser offense.

Not Automatic

Continue Reading ››

Prescription Drug Charges in Illinois

 Posted on November 09, 2018 in Drug Crimes

The vast majority of people who are prescribed drugs which have potentially harmful side effects are using them in the manner indicated by their doctor. However, some become addicted, or want to make money selling such drugs, and may turn to illegal means to obtain these substances, thinking the consequences will somehow be less severe because, in some instances, possession of such drugs is legal. It is possible to unlawfully possess prescription drugs and to go to jail because of it. Strictly Regulated The prescription of certain substances, even in legal scenarios, is highly regulated by the U.S. Food & Drug Administration (FDA). Under the FDA’s regulatory scheme, drugs are divided into what are called schedules. The lower the schedule, the fewer appropriate medical uses a drug has, and the more stringent the protocols for dispensing it to legitimate patients. For example, Xanax is classified as a Schedule IV drug, with low (but still present) risk of dependence and/or addiction and noted genuine medical usages, while Adderall is classified as Schedule II because while it has some occasional use as a legitimate drug, its potential for abuse is high. Because of these potentially addictive properties, drugs may be prescribed to those who have a true need for them - a person with a panic disorder may have a legitimate need for Xanax, or a person with Attention Deficit Hyperactivity Disorder (ADHD) may benefit from Adderall. This does not mean that such drugs should be unregulated or available over the counter because those without a legitimate need for them might conceivably abuse them. In some cases, even those who do have a legitimate need for such drugs can abuse them. The societal problems caused by abuse of prescription drugs can be just as great as those caused by heroin or crack cocaine.

Substance Abuse Problems Can Be a Factor

Continue Reading ››

FBI Cracks Down on Internet Crimes during Cybersecurity Awareness Month

 Posted on October 31, 2018 in Computer Crime

October is National Cybersecurity Awareness Month, which seeks to remind businesses and the public of the crimes that can be perpetrated online and the ways everyone can make the internet more secure. The National Cybersecurity Awareness Month was created in 2004 by the Department of Homeland Security and the National Cyber Security Alliance.

The FBI takes this opportunity to remind the public of major recent federal charges and convictions in the online arena, including:

• The conviction of an online actor who tried to access university databases to commit fraud and identity theft;
• Charges against a North Korean regime-backed programmer; and
• Seventy-four arrests in this country and abroad of members of an international criminal network participating in a plan to infiltrate business email accounts.

“Realistically, we know we can’t prevent every attack, or punish every hacker,” FBI Director Christopher Wray said. Director Wray added that the FBI will continue to build on the initiatives it has in place to ferret out cybercrime and will continue to try to forge new partnerships with tech companies and others to keep the U.S. at the forefront of cybersecurity.

Continue Reading ››