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	<title>Letter of Apology &#187; Sentencing</title>
	<atom:link href="http://letterofapology.com/category/sentencing/feed/" rel="self" type="application/rss+xml" />
	<link>http://letterofapology.com</link>
	<description>a white-collar blog</description>
	<pubDate>Fri, 25 Jul 2008 07:03:58 +0000</pubDate>
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			<item>
		<title>Refco&#8217;s Bennett Sentenced To 16 Years In Prison</title>
		<link>http://letterofapology.com/2008/07/03/refcos-bennett-sentenced-to-16-years-in-prison/</link>
		<comments>http://letterofapology.com/2008/07/03/refcos-bennett-sentenced-to-16-years-in-prison/#comments</comments>
		<pubDate>Thu, 03 Jul 2008 17:27:56 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Accounting Fraud]]></category>

		<category><![CDATA[Securities Fraud]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/07/03/refcos-bennett-sentenced-to-16-years-in-prison/</guid>
		<description><![CDATA[US District Judge Naomi Reice Buchwald has sentenced former Refco Chairman and CEO Phillip Bennett to 16 years in prison. Bennett pleaded guilty in February to conspiracy, wire fraud, bank fraud, money laundering and making false SEC filings in connection with Refco&#8217;s 2005 collapse which cost investors an estimated $2.4 billion. Bennett will begin serving [...]]]></description>
			<content:encoded><![CDATA[<p>US District Judge Naomi Reice Buchwald has sentenced former Refco Chairman and CEO Phillip Bennett to 16 years in prison. Bennett <a href="http://letterofapology.com/2008/02/16/former-refco-chariman-bennett-pleads-guilty-in-securities-fraud-case/">pleaded guilty</a> in February to conspiracy, wire fraud, bank fraud, money laundering and making false SEC filings in connection with Refco&#8217;s 2005 collapse which cost investors an estimated $2.4 billion. Bennett will begin serving his sentence on September 4 and will be under house arrest until then (<a href="http://news.yahoo.com/s/nm/20080703/bs_nm/refco_bennett_dc_4">Reuters</a> via Yahoo News).</p>
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		<item>
		<title>Rigas Sentences Reduced By Three Years</title>
		<link>http://letterofapology.com/2008/06/25/rigas-sentences-reduced-by-three-years/</link>
		<comments>http://letterofapology.com/2008/06/25/rigas-sentences-reduced-by-three-years/#comments</comments>
		<pubDate>Wed, 25 Jun 2008 20:50:13 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Bank Fraud]]></category>

		<category><![CDATA[Securities Fraud]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/06/25/rigas-sentences-reduced-by-three-years/</guid>
		<description><![CDATA[US District Judge Leonard Sand on Wednesday reduced the sentences of Adelphia Communications founder and former CEO John Rigas and his son, former Adelphia CFO Timothy Rigas by three years each. Sand resentenced John Rigas, now 83, to 12 years in prison and Timothy Rigas to 17 years in prison. The resentencing came about after [...]]]></description>
			<content:encoded><![CDATA[<p>US District Judge Leonard Sand on Wednesday reduced the sentences of Adelphia Communications founder and former CEO John Rigas and his son, former Adelphia CFO Timothy Rigas by three years each. Sand resentenced John Rigas, now 83, to 12 years in prison and Timothy Rigas to 17 years in prison. The resentencing came about after the US Circuit Court of Appeals for the Second Circuit in May 2007 reversed their conviction on one count of bank fraud, citing insufficient evidence. Judge Sand ruled that &#8220;a minimal adjustment is appropriate&#8221; in light of that reversal. An attorney for the Rigases said they plan an immediate appeal, calling the revised sentences &#8220;harsh beyond measure.&#8221; However, the Second Circuit did uphold their convictions on 22 of 23 counts and the US Supreme Court in March 2008 rejected their appeals without comment (<a href="http://uk.reuters.com/article/marketsNewsUS/idUKN2547969220080625">Reuters</a>, earlier <a href="http://letterofapology.com/2008/05/27/judge-hears-rigas-appeal-for-resentencing/">here</a> and <a href="http://letterofapology.com/2008/03/05/supreme-court-rejects-rigas-appeals/">here</a> ).</p>
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		<title>Refco&#8217;s Bennett Seeking Sentence Similar To Milken</title>
		<link>http://letterofapology.com/2008/06/21/refcos-bennett-seeking-sentence-similar-to-milken/</link>
		<comments>http://letterofapology.com/2008/06/21/refcos-bennett-seeking-sentence-similar-to-milken/#comments</comments>
		<pubDate>Sat, 21 Jun 2008 18:14:24 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Accounting Fraud]]></category>

		<category><![CDATA[Securities Fraud]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/06/21/refcos-bennett-seeking-sentence-similar-to-milken/</guid>
		<description><![CDATA[Sentencing for former Refco Chairman and CEO Phillip Bennett is now rescheduled (again) for July 3 before US District Judge Naomi Reice Buchwald in Manhttan. Bennett pleaded guilty in February to conspiracy, wire fraud, bank fraud, money laundering and making false SEC filings (earlier). Prosecutors are seeking a sentence in the same range as the [...]]]></description>
			<content:encoded><![CDATA[<p>Sentencing for former Refco Chairman and CEO Phillip Bennett is now rescheduled (again) for July 3 before US District Judge Naomi Reice Buchwald in Manhttan. Bennett pleaded guilty in February to conspiracy, wire fraud, bank fraud, money laundering and making false SEC filings (<a href="http://letterofapology.com/2008/02/16/former-refco-chariman-bennett-pleads-guilty-in-securities-fraud-case/">earlier</a>). Prosecutors are seeking a sentence in the same range as the 25 year sentence of former WorldCom CEO Bernie Ebbers. Bennett&#8217;s attorneys are asking for a non-guidelines sentence in the range of the 10 year sentence former Drexel Burnham Lambert junk bond ace Michael Milken received, noting Bennett&#8217;s <a href="http://letterofapology.com/2008/06/12/trial-date-set-for-refco-attorney-collins-bennett-sentencing-next-week/">cooperation</a> with shareholders in their civil suit (<a href="http://www.law.com/jsp/article.jsp?id=1202422465372">New York Law Journal</a>).</p>
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		<item>
		<title>Mortgage Broker In Equity Stripping Scheme Sentenced To 102 Months In Prison</title>
		<link>http://letterofapology.com/2008/06/13/mortgage-broker-in-equity-stripping-scheme-sentenced-to-102-months-in-prison/</link>
		<comments>http://letterofapology.com/2008/06/13/mortgage-broker-in-equity-stripping-scheme-sentenced-to-102-months-in-prison/#comments</comments>
		<pubDate>Fri, 13 Jun 2008 07:28:06 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Mortgage Fraud]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/06/13/mortgage-broker-in-equity-stripping-scheme-sentenced-to-102-months-in-prison/</guid>
		<description><![CDATA[In Tampa on Wednesday, US District Judge Steven Merryday sentenced Luis Uribe to 102 months in prison for his role in a $6 million &#8220;equity stripping&#8221; mortgage fraud scheme that included identity theft. Uribe, a licensed mortgage broker, pleaded guilty on March 27 to one count of wire fraud and one count of aggravated identity [...]]]></description>
			<content:encoded><![CDATA[<p>In Tampa on Wednesday, US District Judge Steven Merryday sentenced Luis Uribe to 102 months in prison for his role in a $6 million &#8220;equity stripping&#8221; mortgage fraud scheme that included identity theft. Uribe, a licensed mortgage broker, pleaded guilty on March 27 to one count of wire fraud and one count of aggravated identity theft. He was accused of obtaining 32 mortgage loans under false pretenses through a shell contracting company, using stolen identities, on the premise of additional construction work to be done, but no work was ever performed by the contracting company (<a href="http://letterofapology.com/2008/03/31/title-agent-sentenced-mortgage-broker-pleads-guilty-in-equity-stripping-scheme/">earlier</a>, <a href="http://tampa.fbi.gov/dojpressrel/2008/mortgagefraud061208.htm">DOJ</a>, <a href="http://www2.tbo.com/content/2008/jun/11/mortgage-scam-artist-who-helped-authorities-gets-p/">Tampa Tribune</a>). On March 28, licensed title agent Andrea Batronie was <a href="http://www2.tbo.com/content/2008/mar/28/woman-mortgage-fraud-scheme-prison/">sentenced</a> to 30 months in prison for her role in the same scheme. In January, Uribe was sentenced to 34 months in prison in US District Court in Chicago for his role in a similar scheme.</p>
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		<item>
		<title>Northwest Wisconsin Man Sentenced To 11 1/2 Years In Prison For Prime Bank Fraud</title>
		<link>http://letterofapology.com/2008/06/09/northwest-wisconsin-man-sentenced-to-11-12-years-in-prison-for-prime-bank-fraud/</link>
		<comments>http://letterofapology.com/2008/06/09/northwest-wisconsin-man-sentenced-to-11-12-years-in-prison-for-prime-bank-fraud/#comments</comments>
		<pubDate>Mon, 09 Jun 2008 06:21:38 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Mail Fraud]]></category>

		<category><![CDATA[Sentencing]]></category>

		<category><![CDATA[Wire Fraud]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/06/09/northwest-wisconsin-man-sentenced-to-11-12-years-in-prison-for-prime-bank-fraud/</guid>
		<description><![CDATA[In Madison on Wednesday, US District Judge Barbara Crabb sentenced Daniel TePoel of Barnes, Wisconsin to 11 1/2 years in prison for defrauding 22 investors of more than $2.5 million. TePoel was convicted by a jury in March on one count of conspiracy, four counts of mail fraud, two counts of wire fraud and one [...]]]></description>
			<content:encoded><![CDATA[<p>In Madison on Wednesday, US District Judge Barbara Crabb sentenced Daniel TePoel of Barnes, Wisconsin to 11 1/2 years in prison for defrauding 22 investors of more than $2.5 million. TePoel was convicted by a jury in March on one count of conspiracy, four counts of mail fraud, two counts of wire fraud and one count of lying to the FBI. TePoel and his business partner Gary Milosevich allegedly solicited the money from friends and neighbors over a ten year period promising high rates of return at low risk in a purported <a href="http://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml">prime bank scheme</a> but never actually invested any funds. Instead, the funds were converted for personal use, including travel and personal living expenses and construction materials and equipment for a failed resort project in Grenada. Both men were indicted in 2007 but Milosevich remains at large. TePoel, who represented himself, blamed everything on his former partner (<a href="http://www.madison.com/tct/news/stories/289921">Capital Times</a>, <a href="http://www.usdoj.gov/usao/wiw/Press/June%204,%202008%20-%20Daniel%20Tepoel%20Sentenced.pdf">DOJ</a>).</p>
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		<title>Former Credit Suisse Banker Sentenced To 10 Years In Prison For Insider Trading</title>
		<link>http://letterofapology.com/2008/06/03/former-credit-suisse-banker-sentenced-to-10-years-in-prison-for-insider-trading/</link>
		<comments>http://letterofapology.com/2008/06/03/former-credit-suisse-banker-sentenced-to-10-years-in-prison-for-insider-trading/#comments</comments>
		<pubDate>Tue, 03 Jun 2008 06:08:33 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Insider Trading]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/06/03/former-credit-suisse-banker-sentenced-to-10-years-in-prison-for-insider-trading/</guid>
		<description><![CDATA[Former Credit Suisse investment banker Hafiz Muhammad Zubair Naseem was sentenced on Friday to 10 years in prison by US District Judge Robert Patterson in Manhattan. A jury convicted Naseem in February on one count of conspiracy and 28 counts of insider trading for tipping off a colleague in Pakistan who traded on inside information [...]]]></description>
			<content:encoded><![CDATA[<p>Former Credit Suisse investment banker Hafiz Muhammad Zubair Naseem was sentenced on Friday to 10 years in prison by US District Judge Robert Patterson in Manhattan. A jury convicted Naseem in February on one count of conspiracy and 28 counts of insider trading for tipping off a colleague in Pakistan who traded on inside information of upcoming mergers, resulting in a gain of $7.5 million (<a href="http://letterofapology.com/2008/02/06/former-credit-suisse-banker-convicted-of-insider-trading/">earlier</a>). The colleague, Ajaz Rahim, is fighting extradition from Pakistan (<a href="http://www.bloomberg.com/apps/news?pid=20601091&amp;sid=ambetvzwWrJ8&amp;refer=india">Bloomberg</a>).</p>
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		<title>Weiss Sentenced To 30 Months In Prison</title>
		<link>http://letterofapology.com/2008/06/02/weiss-sentenced-to-30-months-in-prison/</link>
		<comments>http://letterofapology.com/2008/06/02/weiss-sentenced-to-30-months-in-prison/#comments</comments>
		<pubDate>Mon, 02 Jun 2008 22:32:02 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Racketeering]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/06/02/weiss-sentenced-to-30-months-in-prison/</guid>
		<description><![CDATA[Melvyn Weiss, pioneer of shareholder class action lawsuits and former name partner of the firm now known as Milberg LLP, was sentenced today to 30 months in prison by US District Judge John Walter in Los Angeles. In March Weiss agreed to plead guilty to a single count of racketeering, admitting that he engaged in [...]]]></description>
			<content:encoded><![CDATA[<p>Melvyn Weiss, pioneer of shareholder class action lawsuits and former name partner of the firm now known as Milberg LLP, was sentenced today to 30 months in prison by US District Judge John Walter in Los Angeles. In March Weiss agreed to plead guilty to a single count of racketeering, admitting that he engaged in a pattern of racketeering activity covering the period of 1979 to 2005 by paying kickbacks to plaintiffs (<a href="http://letterofapology.com/2008/03/21/more-on-weiss-pleafraud-in-pursuit-of-fraud/">earlier</a>). He must report to prison by August 28 (<a href="http://www.bloomberg.com/apps/news?pid=20601087&amp;sid=a.pf1.gzeVJk&amp;refer=home">Bloomberg</a>, <a href="http://www.mercurynews.com/business/ci_9452671?nclick_check=1">AP</a>).</p>
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		<title>Man Who Laundered Bribes For Cunningham Sentenced To 97 Months In Prison</title>
		<link>http://letterofapology.com/2008/06/02/man-who-laundered-bribes-for-cunningham-sentenced-to-97-months-in-prison/</link>
		<comments>http://letterofapology.com/2008/06/02/man-who-laundered-bribes-for-cunningham-sentenced-to-97-months-in-prison/#comments</comments>
		<pubDate>Mon, 02 Jun 2008 05:33:25 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Public Corruption]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/06/02/man-who-laundered-bribes-for-cunningham-sentenced-to-97-months-in-prison/</guid>
		<description><![CDATA[Although he is lesser known than the principal defendants in the cases related to convicted former Rep. Duke Cunningham, financier Thomas Kontogiannis received a significant sentence: 97 months in prison for for his involvement in laundering bribe money from hundreds of defense contractors for Cunningham. The sentencing took place on May 16 before US District [...]]]></description>
			<content:encoded><![CDATA[<p>Although he is lesser known than the principal defendants in the cases related to convicted former Rep. Duke Cunningham, financier Thomas Kontogiannis received a significant sentence: 97 months in prison for for his involvement in laundering bribe money from hundreds of defense contractors for Cunningham. The sentencing took place on May 16 before US District Judge Larry A. Burns in San Diego. Burns previously sentenced Cunningham to 8 years and 4 months and defense contractor Brent Wilkes to 12 years in prison. Kontogiannis had pleaded guilty in February 2007 to a single count of money laundering in connection with a fraudulent mortgage that allowed Cunningham to buy his mansion in Rancho Santa Fe; at the sentencing hearing, AUSA Jason Forge alleged that Kontogiannis had continued to make fraudulent mortgages after his guilty plea (<a href="http://sandiego.fbi.gov/dojpressrel/pressrel08/sd051608a.htm">DOJ</a>, <a href="http://www.signonsandiego.com/news/politics/20080517-9999-1m17tommyk.html">San Diego Union-Tribune</a>).</p>
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		<title>Judge Hears Rigas Appeal For Resentencing</title>
		<link>http://letterofapology.com/2008/05/27/judge-hears-rigas-appeal-for-resentencing/</link>
		<comments>http://letterofapology.com/2008/05/27/judge-hears-rigas-appeal-for-resentencing/#comments</comments>
		<pubDate>Tue, 27 May 2008 06:09:23 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Bank Fraud]]></category>

		<category><![CDATA[Securities Fraud]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/2008/05/27/judge-hears-rigas-appeal-for-resentencing/</guid>
		<description><![CDATA[At a resentencing hearing in Manhattan on Thursday, an attorney for imprisoned Adelphia Communications founder and former CEO John Rigas and his son, former Adelphia CFO Timothy Rigas asked US District Judge Leonard Sand to reevaluate their sentences. The Rigases participated in the hearing by video hookup from prison. Both were convicted of securities fraud, [...]]]></description>
			<content:encoded><![CDATA[<p>At a resentencing hearing in Manhattan on Thursday, an attorney for imprisoned Adelphia Communications founder and former CEO John Rigas and his son, former Adelphia CFO Timothy Rigas asked US District Judge Leonard Sand to reevaluate their sentences. The Rigases participated in the hearing by video hookup from prison. Both were convicted of securities fraud, bank fraud and conspiracy in 2004; John Rigas, now 83, was sentenced to 15 years in prison, while Timothy Rigas received a 20 year sentence. The US Circuit Court of Appeals for the Second Circuit upheld their convictions on 22 of 23 counts in May 2007; they began serving their sentences last August, and the US Supreme Court in March 2008 rejected their appeals without comment (<a href="http://letterofapology.com/2008/03/05/supreme-court-rejects-rigas-appeals/">earlier</a>). But the Second Circuit reversed their conviction on one count of bank fraud, citing insufficient evidence, which led to the resentencing hearing.</p>
<p>Attorney Lawrence McMichael argued the reversal of the single count was due to a substantive error and therefore all counts should be reevaluated. He also asked the court to consider new sentencing rules and new evidence from civil proceedings that has come to light since the original trial. However, Judge Sand said the reversal was on a lesser count of bank fraud and not the bigger conspiracy charge, and he has already rejected a motion to reconsider based on new evidence. He could choose to let the sentences stand since the reversed count was being served concurrently; McMichael asked for both sentences to be reduced to only 12 months. Judge Sand declined to rule immediately, indicating that he would publish a written decision in the coming weeks. But he stated, &#8220;There’s no acceptance of any responsibility for what occurred at Adelphia, and I don’t think that’s an overstatement. I think the defendants are in total denial, and that’s very disturbing&#8221; (<a href="http://www.reuters.com/article/domesticNews/idUSN2234278820080522?sp=true">Reuters</a> ).</p>
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		<title>Pop Promoter Pearlman Sentenced To 25 Years In Prison</title>
		<link>http://letterofapology.com/2008/05/22/pop-promoter-pearlman-sentenced-to-25-years-in-prison/</link>
		<comments>http://letterofapology.com/2008/05/22/pop-promoter-pearlman-sentenced-to-25-years-in-prison/#comments</comments>
		<pubDate>Thu, 22 May 2008 06:28:49 +0000</pubDate>
		<dc:creator>Dave Westheimer</dc:creator>
		
		<category><![CDATA[Other Fraud]]></category>

		<category><![CDATA[Securities Fraud]]></category>

		<category><![CDATA[Sentencing]]></category>

		<guid isPermaLink="false">http://letterofapology.com/?p=359</guid>
		<description><![CDATA[Lou Pearlman, the sadist pop music promoter who gave the world  N’Sync and the Backstreet Boys, was sentenced on Wednesday to 300 months in prison by US District Judge G. Kendall Sharp in Orlando. Pearlman pleaded guilty in March (earlier) to two counts of conspiracy, one count of money laundering and one count of making [...]]]></description>
			<content:encoded><![CDATA[<p>Lou Pearlman, the <span style="text-decoration: line-through;">sadist</span> pop music promoter who gave the world  N’Sync and the Backstreet Boys, was sentenced on Wednesday to 300 months in prison by US District Judge G. Kendall Sharp in Orlando. Pearlman pleaded guilty in March (<a href="http://letterofapology.com/2008/03/07/pop-promoter-pearlman-pleads-guilty-to-frauds-totaling-300-million/">earlier</a>) to two counts of conspiracy, one count of money laundering and one count of making a false claim in a bankruptcy in connection with a series of long-running fraud schemes which caused losses to 250 investors estimated at $200 million and losses to 10 financial institutions estimated at $100 million. His schemes included enticing individuals and banks to invest millions of dollars in two airline companies which existed only on paper, a Ponzi scheme involving the sale of “employee investment savings accounts,” a bank fraud involving faked financial statements, and a plot to siphon frozen assets from a bankruptcy case. Sharp offered Pearlman the opportunity to shorten his sentence by one month for every $1 million repaid to his bankruptcy trustee, but the assets recovered to date (including his mansion and Rolls) will not count toward the incentive (<a href="http://www.reuters.com/article/newsOne/idUSN2139523420080521?sp=true">Reuters</a>, <a href="http://www.mtv.com/news/articles/1587827/20080521/id_0.jhtml">MTV</a>).</p>
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