New York Criminal Lawyer Blog

Queens County, the new hotbed of white collar crime and prosecutions, is the home of another alleged fraudulent scheme being prosecuted by the Queens County District Attorney's Office. According to a Queens County District Attorney's Office press release, Roger Arias, Martina Duran (a.k.a. Gladys Arroyo), Aldo Bussi, Ramon Gaston, and Percy Randall are alleged to have taken part in a $2 million Mortgage Fraud and Identity Theft scheme.

It is alleged in a 327 count indictment that Arias, the owner of Club Kalua, along with the other individuals used stolen identities to buy and sell three separate properties in Queens County. Not only are these individuals alleged to have used fraudulent identification to perpetrate their crimes while posing as buyers and sellers of real estate, one of the alleged stolen identities belonged to a deceased person.

According to the Queens District Attorney's Office press release:

"An investigation revealed that the property was allegedly sold during a closing on July 13, 2006, that began in an attorney’s office in Westbury but concluded that evening in a restaurant parking lot in Deer Park, Long Island. It is alleged that three unidentified individuals showed up at the closing with fake identification and pretended to be the two actual homeowners (one of whom had died three months earlier) and the buyer. The house was sold for $500,000, of which $340,948 was due the two homeowners – less their existing mortgage. However, it is alleged that $250,0000 of that amount went to Duran – who organized and was present at the closing – and her co-conspirators."

"The investigation further revealed that a mother and daughter had been in contract with the defendant and real estate broker, Roger Arias, about purchasing a house. Although the women provided Arias with their personal identification information, they ultimately decided to return to the Dominican Republic without buying a house. However, at a closing held on December 15, 2006, the owner of a property located at 56-10 Waldron Street in Corona allegedly sold his home for $701,000 to a woman who purported to be the older Dominican woman. It is alleged that Arias allegedly stole the woman’s identity and had an unidentified individual use it to purchase the Corona property, of which Duran and her co-conspirators allegedly received approximately $50,000 from the sale of the property."

"Finally, according to the investigation, a third property located at 116-36 139th Street in Jamaica was purchased – allegedly with the assistance of Duran – using an imposter-buyer who had stolen the identity of an elderly woman living in Puerto Rico. A closing for the property was allegedly held on April 20, 2007, at which time the true owner of the home sold it for $550,000 ostensibly to the elderly woman. In fact, the woman was the victim of identity theft and has never traveled to the United States. Duran and her co-conspirators allegedly received approximately $50,000 from the sale of the property."

The defendants are charged with Grand Larceny in the Second Degree, Identity Theft in the First Degree, Forgery in the Second Degree, Criminal Possession of a Forged Instrument in the Second Degree and Falsifying Business Records in the First Degree. Grand Larceny in the Second Degree is a "C" felony punishable by up to 15 years in prison. Identity Theft in the First Degree, Forgery in the Second Degree and Criminal Possession of a Forged Instrument in the Second Degree are "D" felonies punishable by up to 7 years in prison while Falsifying Business Records in the First Degree is an "E" felony punishable by up to 4 years in prison.

Crotty Saland LLP is a New York criminal defense firm. Founded by two former Manhattan prosecutors, Crotty Saland LLP represents clients throughout the New York City region.

The Brooklyn, Kings County, District Attorney's Office has announced that a Grand Jury indicted three individuals for Grand Larceny in the Second Degree for allegedly bilking the New York City Transit Authority (NYCTA) out of approximately $150,000. According to the press release, Jacqueline Jackson, a NYCTA supervisor, John Headley, an assistant district attorney who served under Charles Hynes in Brooklyn from 1991 to 1995, and Joyce Ilarraza, a former New York City Corrections Officer, are named on two separate indictments.

As a supervisor at NYCTA, Jackson's responsibilities included overseeing a staff of ten. Her responsibilities included setting up independent medical examinations for individuals who were suing NYCTA. Headley, no longer a prosecutor, had his own firm, Advance IME Co. This company provided the Torts Division of the NYCTA Law Department with independent medical examinations. Additionally, if necessary, Headley's company also provided medical records and expert witnesses at trial. It is alleged that from from 2007 through 2008, Jackson instructed her staff to direct business to Advance IME Co. and to approve billing and invoices to Headley's company. As a result, prosecutors contend that $98,000 was stolen from NYCTA. In return for this business, Headley allegedly paid for Jackson's personal expenses including her electric and gas bills.

In addition to the above indictment, a second indictment accuses Jackson, Headley and Ilarraza of stealing $50,000 from NYCTA from 2005 through 2007. In that indictment, it is alleged that Jackson approved inflated or increased bills from Illarraza's company, AJI Records Retrieval. AJI Record Retrieval assisted in the tracking and location of medical records. It is alleged that Jackson received half of the money illegally generated by the fraudulent bills.

The defendants each face the charges of Grand Larceny in the Second Degree, a "C" felony punishable by up to 15 years in prison, and Falsifying Business Records in the First Degree as well as Offering a False Instrument for Filing in the First Degree, both "E" felonies punishable by up to 4 years in prison.

Crotty Saland LLP is a criminal defense firm located in New York. Founded by two former Manhattan prosecutors, Crotty Saland LLP represents clients throughout the New York City region.

Robert Halderman, the man who was accused by prosecutors of extorting and blackmailing "Late Show" host David Letterman, finally gave up on his concocted "screenplay" defense and pleaded to Attempted Grand Larceny by Extortion in Manhattan Supreme Court. In return for his plea, Mr. Halderman will be sentenced to six months in jail (he will serve roughly four months with good time) along with one thousand hours of community service and probation. This type of sentence involving probation and jail is commonly referred to in the practice of criminal law as a "split."

Although he has yet to be sentenced, this plea marks the end of a ongoing saga for Mr. Halderman, Mr. Letterman and the employee who was in the middle of the conflict. I am confident there will be ample speculation as to why both a relatively low plea recommendation was made and why Mr. Halderman accepted such a plea (Mr. Halderman had faced no minimum term of incarceration, but up to 5 to 15 years in state prison). That being said, I believe Mr. Halderman and his attorney recognized that the "screenplay defense" wasn't going to fly. Moreover, instead of recommending a state prison sentence where Mr. Halderman would have had no other choice but to take the case to trial, the prosecution may have wanted to spare Mr. Letterman and the employee any further embarrassment.

Mr. Halderman's attorney unquestionably advocated for his client and fought as best he could to either have the case dismissed or reduced to avail his client of the best possible disposition. Once all legal and factual avenues have been zealously, but unsuccessfully, pursued, sometimes a criminal lawyer must advise the client that he or she should consider a little "medicine" rather than proceeding to trial where the likelihood of success may be significantly reduced.

For further information on Grand Larceny by Extortion and the "New York Extortion Primer" follow this link.

For further blog entries on the Letterman/Halderman case follow this link.

For Jeremy Saland's commentary on the Letterman/ Halderman case for the LA Times follow this link.

Crotty Saland LLP is a criminal defense firm located in New York. Founded by two former Manhattan prosecutors, Crotty Saland LLP represents clients throughout the New York City region.

Whether a vehicle is stolen or being driven without permission of the owner, one particular crime that may be charged in New York is Unauthorized Use of a Vehicle in the Second and Third Degrees pursuant to New York Penal Law sections 165.06 and 165.05 respectively. While other crimes may have been perpetrated, such as Grand Larceny in the Fourth Degree, an "E" felony punishable by up to four years in state prison, Unauthorized Used of a Vehicle, the "joyriding statute," is defined as follows:

NY PL 165.05(1) - Unauthorized Use of a Vehicle in the Third Degree

A person is guilty of Unauthorized Use of a Vehicle in the Third Degree when knowing that he does not have the consent of the owner, he takes, operates, exercises control over, rides in or otherwise uses a vehicle. A person who engages in any such conduct without the consent of the owner is presumed to know that he does not have such consent

Unauthorized Use of a Vehicle in the Third Degree is a class "A" misdemeanor punishable by up to one year in jail.

NY PL 165.06 - Unauthorized Use of a Vehicle in the Second Degree

A person is guilty of Unauthorized Use of a Vehicle in the Second Degree when he commits the crime of Unauthorized Use of a Vehicle in the Third Degree as defined in subdivision one of section 165.05 of this article (above) and has been previously convicted of the crime of Unauthorized Use of a Vehicle in the Third Degree as defined in subdivision one of section 165.05 or Second Degree within the preceding ten years.

Unauthorized use of a vehicle in the second degree is a class E felony punishable by up to four years in prison.

Now that you have a basic understanding of the crime(s) of Unauthorized Use of a Vehicle, I will address an interesting issue that recently played out before a New York Supreme Court Criminal Term.

Continue reading "New York Penal Law 165.05 & 165.06: Unauthorized Use of a Vehicle & Your NY Criminal Defense" »

Michael Archer, better known as D'Angelo, was arrested over the weekend and charged with Patronizing a Prostitute in the Third Degree, pursuant to New York Penal Law 230.04. Cops arrested the R&B star after he allegedly solicited an undercover cop posing as a prostitute in Manhattan and offered her $40 (yup, forty bucks) for her services. Although it is an "A" misdemeanor punishable by up to one year in jail, it is highly unlikely D'Angelo will serve any time.

While D'Angleo will probably end up steering clear of this rap, Lil Wayne, a/k/a, Dwayne Carter, was not so lucky. Earlier today he was finally sentenced to jail in connection to his plea for possessing a firearm in New York without the requisite permit. Unlike state prison where one does more time before one is eligible for parole, it is likely that Lil Wayne will get out of jail well before his year sentence is up. In fact, with good behavior he may get out in time for Thanksgiving 2010 where D'Angelo could spot him $40 for a turkey.

Crotty Saland LLP is a criminal defense firm located in New York. Founded by two former Manhattan prosecutors, Crotty Saland LLP represents clients throughout the New York City region.

For further information on the laws of Escort Services and Prostitution in New York, follow the link.

For further information on the laws of Gun and Weapon Possession in New York, follow the link.

The Queens County District Attorney's Office keeps churning out high profile white collar fraud cases. Unfortunately for Matthew McEntee and Mariwa M. Mora, two Flushing residents, these two defendants are awaiting arraignment after they were arrested in connection to an alleged fraud scheme involving $16 million in assets.

According to the Queens District Attorney's Office press release, Mr. McEntee, wrongfully portraying himself to be an attorney, and Ms. Mora, allegedly scammed twelve property owners out of $16 million in assets including properties in New York, Pennsylvania, Texas and California. "[A] ccording to the criminal charges, an unapprehended individual introduced McEntee to the victims as an investor who was looking to buy properties for his corporations – Clarity Corporate Trust and Conveyance Corporate Trust. During the introductions, McEntee allegedly claimed to be an attorney, an accountant and a banker and introduced Mora as either his fiancee or wife. In some cases, it is alleged, while negotiating the cash sales of the properties, McEntee also offered to buy the victims’ high-end vehicles – such as Mercedes Benzs, Mustangs and SUVs – and expensive house furnishings. McEntee also allegedly told some of the victims that for corporate tax reasons if they brought money or other valuables to the closing, he would issue them a check for double the value which would be in the payment check for the properties. In each instance, the certified corporate checks drawn on an HSBC bank account that the defendants allegedly provided to the victims at the closings were deemed forged."

Beyond the properties, some of the alleged victims were duped into turning over over $300,000 in cash as well as jewelry and mink coats.

The defendants are charged with Grand Larceny in the First, Second, Third and Fourth Degree, punishable by up to 25, 15, 7 and 4 years in prison respectively. They are also charged with Criminal Possession of Stolen Property in the Second Degree, punishable by up to 15 years in prison as well as Criminal Possession of a Forged Instrument in the Second Degree, punishable by up to 7 years in state prison.

Crotty Saland LLP is a criminal defense firm located in New York. Founded by two former Manhattan prosecutors, Crotty Saland LLP represents clients throughout the New York region.

Only days ago, I published an entry regarding the new Cybercrime and Identity Theft Bureau in the Manhattan District Attorney's Office. Having served as a member of that bureau's predecessor, the Identity Theft Unit, during my seven years as a prosecutor under Robert Morgenthau, I commented on the necessity of such a unit despite my adversarial role as a New York criminal defense attorney. I don't think anyone could argue the significance of this expanded bureau as schemes involving Identity Theft and Computer Crime continue to flourish in New York and beyond.

Although the most recent arrests and allegations stem from the Queens County District Attorney's Office, the purpose of such a unit or bureau has once again been made clear. According to the Queens County District Attorney's Office, twelve individuals, including five employees at PC Richards and Sons, have been arrested and indicted in a fraudulent credit card "bust out" scheme. The 92 count indictment charges Raza Chaudry, Reema Chaudry, Tahir Chaudry, Azadar Chaudry, Zishan Chaudry, Shaheen Akhtar. Hemet Adnand, Mathew Alli, Mohammad Aslam, David Francis, Benzy Jonny and Sheikh "Naveed" Zaheer with crimes including Grand Larceny, Criminal Possession of a Forged Instrument, Falsifying Business Records and Offering a False Instrument for Filing. Although they are not charged with the technical crime of Identity Theft, it is alleged that the "bust out" scheme involved stolen social security numbers. According to the Queens District Attorney's Office, a search warrant resulted in the recovery of "Pakistani passports belonging to several of the defendants and bearing multiple names and dates of birth, blank Social Security cards, Canadian and New York driver’s licenses and binders containing in excess of 300 credit cards."

Briefly, a "bust out" scheme involves transactions on a credit car where the credit card is "swiped" and a transaction is completed. The credit card company pays the merchant for the transaction or purchase. There are numerous variations going forward. For example, a "collusive merchant" may be aware that the card swiped is fraudulent. However, the merchant will get paid by the credit card company and claim he sold the items and he should not be at a loss because he did not know the card was fraudulent. Therefore, the merchant keeps the money from the alleged legitimate transaction without selling anything and shares the fee with fake buyer.

Another variation is alleged in this case. It appears that fraudulent checks were used to increase credit lines on credit cards. In an example of this, an individual takes out a credit card in another person's name without their permission, or in some circumstances pays that person to use their information. Sometimes legitimate transactions are made thereby raising the credit of the card over time. At some point a payment is made to the credit card, but with a bad check. Because of relaxed regulations, once the check hits the account and before there is a determination that the check is "good," the credit card company credits the account in the amount of the check. Therefore, there is a window of time before the check bounces that the credit card balance is falsely lowered. During this time, the fraudster can make further purchase. Once the credit card company realizes is, the items are gone. This cycle often continues with fake checks until a credit card with a limit of $5,000 is "busted out" in the amount of $25,000. Often times these schemes are not one or two credit cards, but a network of individuals with dozens or hundreds of credit cards. As a prosecutor in Manhattan, I led a similar investigation with the Secret Service into a particular scheme involving well north of 100 credit cards with "bust out" fraud in the multiple millions.

Continue reading "Queens Identity Theft & Credit Card "Bust Out" Scheme Results in Indictment of Five PC Richards Employees" »

Like identity theft crimes, cybercrimes and computer related offenses are becoming more prevalent in New York. In fact, the Manhattan District Attorney's Office has a unit, the Cybercrime and Identity Theft Bureau, whose main focus is to prosecute this criminal activity. One particular crime, among many, that may be established with relative ease by prosecutors is the crime of Computer Trespass pursuant to New York Penal Law section 156.10. Computer Trespass is defined as follows:

A person is guilty of Computer Trespass when he or she knowingly uses, causes to be used, or accesses a computer, computer service, or computer network without authorization and:

1. he or she does so with an intent to commit or attempt to commit or further the commission of any felony; or

2. he or she thereby knowingly gains access to computer material.

Computer trespass is a class E felony punishable by up to four years in state prison.

Although the crime of Computer Trespass, like all computer related offenses, has specific and special definitions to elements found in the statute, one of the most important terms in this statute is "without authorization" as it is a defense to this crime if a person had reasonable grounds to believe that he or she in fact had authorization to use the computer. See New York Penal Law 156.50(1).

Pursuant to New York Penal Law 156.00(8):

“'Without authorization' means to use or to access a computer, computer service or computer network without the permission of the owner or lessor or someone licensed or privileged by the owner or lessor where such person knew that his or her use or access was without permission or after actual notice to such person that such use or access was without permission. It shall also mean the access of a computer service by a person without permission where such person knew that such access was without permission or after actual notice to such person, that such access was without permission."

"Proof that such person used or accessed a computer, computer service or computer network through the knowing use of a set of instructions, code or computer program that bypasses, defrauds or otherwise circumvents a security measure installed or used with the user's authorization on the computer, computer service or computer network shall be presumptive evidence that such person used or accessed such computer, computer service or computer network without authorization."

Computer Trespass, like other cybercrimes, is an offense with serious ramifications. The above statute(s) do not encompass all the nuances and underlying definitions for this crime. Moreover, because cybercrimes and computer crimes are constantly reinventing themselves, a review of applicable case law may be relevant when assessing the viability of the charges against you as well as the potential defenses.

Crotty Saland LLP is a New York criminal defense firm. Founded by two former prosecutors who served in the Trial Division, Identity Theft Unit and Special Prosecutions Bureau of the Manhattan District Attorney's Office, Crotty Saland LLP represents clients in white collar and fraud related crimes throughout the New York City region.

For further information on Identity Theft and related crimes follow this link.

For Further information on Computer Trespass and related computer crimes follow this link.

According to a Manhattan District Attorney's Office press release, the New York County District Attorney has announced the formation of another "new" bureau. District Attorney Vance's Cybercrime and Identity Theft Bureau technically ratchets up the current Identity Theft Unit to formally add the investigation and prosecution of cybercrime. In reality, many of the prosecutors assigned to the Major Case Section of the Identity Theft Unit had already been investigating and prosecuting these crimes. However, District Attorney Vance is taking the necessary steps to expand the unit into a bureau. Additionally, District Attorney Vance is increasing the number of prosecutors who will "specialize" in this area while further training them in this dynamic area of criminality and law.

From the perspective of law enforcement, a bureau such as this is a much needed arm of the District Attorney's Office. The original unit, founded by two outstanding attorneys and prosecutors no longer with the office, was on the forefront of cybercrime and identity theft investigations when it was created in 2004. Having been one of the original prosecutors assigned to the Identity Theft Unit and the Major Case Section upon their respective creations, I not only learned from these two prosecutors and obtained training in forensics and the investigation of computer crimes, but witnessed firsthand the ease by which these crimes were perpetrated and the creativity of those who sought to benefit from this criminality. The transition of this unit into the new bureau not only displays District Attorney Vance's recognition of the magnitude of these types of crimes, but is a testament to the dedication, work and efforts of the two founders of the unit as well as those currently working there, to bring the Manhattan District Attorney's Office into the new era of identity theft and cybercrime investigations.

As a criminal defense attorney in New York with extensive experience in these types of crimes, I recognize I will have an adversarial role with the bureau representing my clients and zealously advocating for them regardless of the fraud they stand accused of. Despite this adversarial relationship, from the perspective of an everyday New Yorker, I also acknowledge that District Attorney Vance is doing a service to Manhattan and beyond by taking the old unit into the next generation of cybercrime and identity theft investigations.

For more information on Identity Theft and Computer crimes please follow the respective links.

Crotty Saland LLP is a New York criminal defense firm representing clients throughout the New York City region. Crotty Saland LLP was founded by two former Manhattan prosecutors.

According to various media sources, White Plains Mayor and former Assemblyman Adam Bradley has been arraigned in White Plains City Court after he was arrested for the crime of Assault in the 3rd Degree pursuant to New York Penal Law section 120.00. It is alleged that the politician got into a dispute with his wife, grabbed her arm, put her finger in the area of the door frame and closed the door. As a result, it is alleged that his wife sustained an injury to her finger.

Although the reports do not appear to indicate Mrs. Adams suffered a serious injury, as I noted in a previous blog entry, when one uses a dangerous instrument (a door can constitute as such) to perpetrate the crime of Assault in the Third Degree, the offense can be elevated to a "D" felony of Assault in the Second Degree, pursuant to New York Penal Law section 120.05(2). This crime is punishable by up to seven years in state prison as opposed to the misdemeanor which carries a maximum sentence of one year.

Despite the potential gravity of such an accusation, Mayor Bradley has adamantly maintained that he never mistreated his wife.

For further reading on the crimes of Assault in the Third Degree and Assault in the Second Degree, please read this entry.

Crotty Saland LLP is a New York City based criminal defense firm. Founded by two former Manhattan prosecutors, Crotty Saland LLP represents clients throughout the New York City region.

The NY criminal defense attorneys and former Manhattan prosecutors at Crotty Saland, LLP have handled a significant number of Desk Appearance Tickets (DATs) and "pink" summonses for our clients. In Manhattan, these cases are often dealt with at 100 Centre Street, 346 Broadway ("pink" ticket / summons court) or at Midtown Community Court. Whether the summons or Desk Appearance Ticket (DAT) charges you with Shoplifting Petit Larceny (NY PL 155.25 or NY PL 165.40), Marijuana (NY PL 221.10), Drug Possession (NY PL 220.03), Theft of Services (NY PL 165.15), Assault (NY PL 120.00), Trespass (NY PL 140.10), or even Disorderly Conduct (NY PL 240.20), the ramifications of mishandling the Desk Appearance Ticket (DAT) is no different than if you were arrested, booked and put through the criminal justice system. That means, you can still end up with a criminal record even though you were merely given a "ticket" for a criminal act.

For the purpose of today's entry, I will discuss the differences between the potential Manhattan courts that deal with these charges. Again, a Desk Appearance Ticket (DAT) or "pink ticket" summons in Manhattan is returnable to 100 Centre Street, Midtown Community Court or 346 Broadway.

100 Centre Street

The criminal court building houses the majority of the criminal courts in Manhattan. This building is where cases are generally arraigned (where the judge informs you of the charges) and where an accused sees the judges over the course of their pending cases. Desk Appearance Tickets (DAT) in Manhattan are returnable here as well. On the first floor of 100 Centre Street are the arraignment courts. On the date you are to go to court to deal with your desk appearance ticket you should arrive no later than 9:00 am. After going through security, you will wait in the court or outside the courtroom if it is filled to capacity. Sometimes, due to the number of cases being arraigned, the wait can be hours before you see an attorney or the judge. For this reason, and others as well, it is important to retain an attorney ahead of time. Generally, this expedites the process significantly. For more information on 100 Centre Street, follow this link for earlier blog entry.

Midtown Community Court

Located at 314 West 54th Street between 8th and 9th Avenue, Midtown Community Court often handles quality of life crimes in the area of midtown such as Times Square. The closest subway station to Midtown Community Court is the 7th Avenue, B, D or E as well as the 50th Street C or E trains. The offenses prosecuted here are misdemeanors or violations and very often deal with non-violent crimes. Although not felonies, these crimes are still punishable by up to one year jail. Make no mistake, merely because you are being prosecuted in community court by no means make the case less significant. In fact, if the case is not resolved at your arraignment, it may be adjourned to 100 Centre Street. It is important to note that crimes involving Prostitution and Escort Services often remain in Midtown Community Court and are not transferred to 100 Centre Street.

Unlike 100 Centre Street, Midtown Community Court has one court room. Although just as formal, there are significantly less cases prosecuted here and the atmosphere is not as overwhelming. That being said, if your Desk Appearance Ticket (DAT) requires your appearance at 9:30 am, get to court by 9 am because the line to get in often extends outside the building. Moreover, once inside, you will be screened and walk through a metal detector.

In addition to misdemeanors, Midtown Community Court also handles "pink ticket" summonses. Often times these cases are resolved with a fine, community service, a quality of life program or a combination of these sentences.

346 Broadway

Located at - you guessed it - 346 Broadway, the summons court handles most "pink ticket" summonses issued by the police. This court is located between Lafayette Street and Broadway. The entrance is on Leonard Street. The closest subway station is the 6 at Canal Street and the 4,5 or 6 train at Brooklyn Bridge / City Hall. Additionally, the 1 train at Franklin Street, the A or C at Chambers Street or the R or W at City Hall are relatively close. As noted above, if your case is scheduled for 9:30 am, get online by 9:00 am. Not only can the line to go through security extend around the side of the building, once inside, you must go to the second floor and wait on another line. This line is often 25 to 50 people long. When you are done waiting, you turn in your ticket to a clerk who will advise you which court room on the second floor to go to. Because these courtrooms are small, if you are not there early there is a chance you will have to wait in the hallway as there will be no seating.

Like all of the other courts, if you cannot afford counsel one will be provided for you. Having your own counsel, however, often significantly expedites the process. Regardless, each case is handled the same at 346 Broadway as there is no prosecutor, but a retired judge who presides over the cases. These judges are judicial hearing officers who do not necessarily follow the guidelines for similar prosecutions at 100 Centre Street or Midtown Community Court. However, if you and your criminal defense attorney believe your criminal case is being treated unfairly or differently, a request can be made to have that case transferred to 100 Centre Street. This can be discussed with your counsel and may be advisable if the case cannot be resolved appropriately at 346 Broadway.

Although merely a snapshot into the different Manhattan courts, this entry addresses questions often raised by those unfamiliar with the courts. For further information or to educate yourself on Desk Appearance Tickets (DAT) or a summons, check NewYorkDAT.Com regularly for updates to the blog.

Founded by two criminal defense attorneys who previously served as prosecutors in the Manhattan District Attorney's Office, Crotty Saland LLP represents clients throughout the New York City region.

New York white collar crimes are found in all different shapes and sizes. From misdemeanor to felonies and from crimes involving individuals to large multi-party schemes, Mortgage Fraud, pursuant to New York Penal Law sections 187.05, 187.10, 187.15, 187.20 and 187.25, is one of the growing areas of white collar crime. Although not as common as "regular" Mortgage Fraud, a crime associated with real estate transactions and this particular offense is Fraudulent Disposition of Mortgaged Property pursuant to New York Penal Law section 185.10.

NY PL 185.10, Pursuant to Fraudulent Disposition of Mortgaged Property:

A person is guilty of Fraudulent Disposition of Mortgaged Property when, having theretofore executed a mortgage of real or personal property or any instrument intended to operate as such, he sells, assigns, exchanges, secretes, injures, destroys or otherwise disposes of any part of the property, upon which the mortgage or other instrument is at the time a lien, with intent thereby to defraud the mortgagee or a purchaser thereof.

Fraudulent Disposition of Mortgaged Property is a class "A" misdemeanor punishable by up to one year in jail.

Briefly, for one to perpetrate this crime, one must possess an "intent to defraud." In fact, it has been held that one is not guilty of this crime if one does not possess this fraudulent intent. See People v. Staton, 79 A.D. 634 (2 Dept. 1909) (There was no "intent to defraud" where a mortgagor shipped his mortgaged goods to his spouse who was in another state. The mortgage stipulated this could not be done without the consent of the mortgagee. The mortgagor did not attempt to conceal anything and made voluntary payments on his mortgage. Therefore, there was no "intent to defraud.")

Even if one is found to have the "intent to defraud," it is likely that the crime of Fraudulent Disposition of Mortgaged Property is the least of one's concerns. If one obtains money or property, for example, valued in the tens or hundreds of thousands of dollars, one may also face the crimes of Grand Larceny in the Third and Second Degrees where the punishment may be up to seven or fifteen years in prison respectively. Moreover, a defendant may face additional felonies including, but not limited to, Falsifying Business Records, Forgery and Offering a False Instrument for Filing.

Crotty Saland, LLP is a criminal defense firm representing clients in white collar criminal matters. Founded by two former Manhattan prosecutors, Crotty Saland, LLP is located in New York, NY.