Miami Criminal Attorney Blog

A Delray Beach man is facing charges in connection with a South Florida ATM skimming operation, the Palm Beach Post reported.

The 31-year-old defendant was arrested on South Beach and charged with computer fraud, identity theft and other crimes. A Miami criminal defense attorney experienced in defending clients against computer crimes in South Florida will carefully review the evidence in this case. What authorities suspect and what they can prove are frequently two different things. Obtaining proof of computer crimes is often a complex process. Defendants are best served by declining to make any statements to law enforcement. As this story notes, the defendant and an alleged accomplice were stopped two years ago. While it's unclear whether either was ever convicted of a crime, neither was sentenced to prison.

Those victimized by an ATM skimmer should consult a Miami law firm experienced with representing victims of fraud and identity theft. Once you believe someone has gained access to your bank accounts or personal information, you typically have a very short amount of time to notify the authorities and protect your rights before being held responsible for the damages that result.

The defendant allegedly attached skimmers to ATMs across South Florida and made off with tens of thousands of dollars. A partner in Southern California is accused of using the devices to steal more than $70,000. Authorities say the skimming thefts are a growing concern. While the average high-risk bank robbery results in a take of about $5,000 to $10,000, the average ATM skimming operation can net $50,000 to $100,000.

Officers from Palm Beach Gardens, Boca Raton and Miami Beach arrested the suspect on South Beach. He is charged with three counts of fraud under $20,000, theft of between $300 and $5,000; two counts of ATM fraud and identity theft; one count of computer fraud and one count of an organized scheme to defraud.

The skimmers are attached to ATM machines and record card and security code information. In the latest series of attacks, ATMs were targeted in Palm Beach Gardens, North Palm Beach and Boca Raton.

One bank reported 28 accounts had been compromised and $44,702 had been pulled from accounts before authorities managed to pull the plug.

Continue reading "Miami ATM fraud a growing problem; defendants face theft and computer fraud charges, victims left to deal with identity theft" »

The arrest this week of a computer hacker in California demonstrates how dangerous and complex the online world has become. As we recently reported on our Miami Criminal Attorney Blog, nearly one-third of all computer crimes in the United States originate in Florida.

For victims of computer crime in South Florida or those charged with cyber crimes in Miami, hiring an experienced Miami computer crimes lawyer is critical to protecting your rights. The location of the criminal makes little difference and the victims can live anywhere in the world.

In this case, the victim is accused of infecting more than 100 computers and using them to extort sexually explicit videos from women and teenage girls. The 31-year-old illegal immigrant was living in Santa Ana and was proficient in multiple computer languages, including Java and C++. The Associated Press reports he found victims on peer-to-peer networks, in which computer users share files and communications pathways. He disguised malicious computer code as popular songs and used it to infiltrate the computers of those who downloaded the files. Once infected, the code passed from computer to computer via instant messages.

The defendant then gained access to the computers of numerous victims in search of explicit images. In some cases he hacked e-mail accounts and posed as boyfriends seeking the photos. Most alarmingly, the FBI reports he was even able to turn on the webcams of some computers and record his own illicit images of unsuspecting victims. Authorities allege he then contacted the victims and threatened to distribute the images unless the woman and teenage girls made additional pornographic videos and sent them to him.

He was arrested this week after an investigation by the Federal Bureau of Investigation and thus far faces a federal extortion charge, which carries a maximum sentence of up to 2 years in prison. U.S. Immigration and Customs Enforcement agents have indicated they will take him into custody as an illegal alien once the case concludes. For now he has been released from jail on his own recognizance and ordered to remain under house arrest -- with no access to a computer.

The Associated Press reports that authorities believe he infected more than 100 computers, resulting in about 230 identified victims, including at least 44 underage girls. Investigators said most of the identified victims live in the Southern California area but acknowledged that victims could live anywhere in the United States or even reside outside the country.

Continue reading "Illegal immigrant accused of high-tech cyber crime provides cautionary tale about the dangers of computer crime in South Florida" »

Bail has been set at $1 million for a Hialeah jeweler accused of federal criminal charges in Miami in connection with a $40 million ponzi scheme. The 39-year-old man surrendered to authorities and appeared before a U.S. magistrate, where he pleaded not guilty to the charges. Authorities allege he operated an investment scam that victimized 35 individuals, the Miami Herald reported.

As we continue to report on our Miami Criminal Attorney Blog,ponzi scams and investment schemes are surfacing throughout South Florida and across the nation. In many cases, the downturn in the economy helped uncover the scams as plummeting property values and stock portfolios resulted in exposure. But, as authorities have grown more aggressive in prosecuting alleged investment scams, an increasing number of defendants are being unfairly targeted for making bad real estate or stock investments.

In this case, the U.S. Securities and Exchange Commission alleges that the defendant offered investors "no risk" loan agreements that promised annual returns to 18 to 120 percent. Investors thought the money was being used in his jewelry business or going to provide financing for pawnshops. Investigators allege he used fake diamonds to convince some investors that their money was safe.

In addition to six counts of securities fraud, the SEC has filed a lawsuit accusing him of breaking federal security laws. Authorities say he used the money on a $3.2 million home, $1 million of jewelry and lavish vacations.

As our Miami criminal defense lawyers have reported, a number of recent high-profile fraud cases have led to criminal charges in South Florida:

-The owner of a Miami computer company has been implicated in an investment fraud ring out of New York City. Click here for details.
-A man was sentenced to 50 years in prison in connection with a South Florida investment fraud scheme.
-Two Miami-area residents were sentenced to prison in connection with a $10 million South Florida real estate fraud scheme.
-A man was arrested on Florida computer fraud charges in connection with a mystery shopper scam.

Continue reading "South Florida investment fraud scams abound; jeweler accused of $40 million Ponzi scheme" »

The owner of a Miami Internet broadcasting company has been charged in an investment fraud scam that led to 13 arrests in Manhattan Wednesday, Business Week reported.

Those facing criminal charges in connection with investment fraud in Miami, or those victimized by investment scams, should contact an experienced law firm to discuss their rights. As we continue to report on our Miami Criminal Attorney Blog, more fraud cases are being exposed as a result of the economic downturn. And authorities are becoming more aggressive in accusing business executives of committing investment crimes.

The arrests, including an alleged member of the Bonanno organized crime family, followed a garment district raid on West 36th Street in Midtown Manhattan, where authorities say an illegal "boiler room" operation had been in operation for a decade. The operation, alternately called Powercom Energy Services Corp and Empire Energy Services Corp., solicited more than $12 million from investors. Money was solicited to purchase stock in Realcast Corp., a Miami-based computer broadcasting company, according to Business Week.

Boiler rooms typically involve high-pressure sales tactics, usually by telephone, to would-be investors. In this case, the owner of Realcast was arrested in Miami and also indicted on federal criminal charges, according to the Wall Street Journal.

Federal prosecutors contend many of the investors were elderly and were not able to check on the claims made by solicitors. Despite false claims made to investors during the last decade, the company has generated "minimal" revenue, most of which went to pay commissions to the Manhattan sales operation, according to authorities. The government alleges the Miami company paid a 50 percent commission on a $700,000 investment as recently as March.

The defendants are charged with conspiracy, securities fraud and wire and mail fraud. The charges carry up to 20 years in prison if convicted. The Miami man was scheduled to appear in federal court in Miami. The Wall Street Journal reported that the Miami defendant described himself in some company filings as a former employee of the Securities and Exchange Commission. The SEC declined to comment.

Realcast Corporation's website was not operational on Thursday.

Continue reading "Miami computer company implicated in federal investment fraud case" »

A 62-year-old Apopka man has been arrested on computer fraud charges in Florida for allegedly participating in a "mystery shopper" scam that targeted victims as far away as Colorado, the Steamboat Pilot reported.

As we reported earlier this year on our Miami Criminal Attorney Blog, about one-third of all U.S. computer crimes originate in Florida. Hiring a Miami defense attorney experienced in handling federal criminal charges and computer fraud charges is necessary to build a proper defense in computer crime cases involving victims in multiple states.

In this case, the defendant faces extradition to Colorado, where authorities allege he victimized a local resident as part of a scam that involved at least two dozen victims. Steamboat Springs police contend they followed a money trail that led to the defendant, who is accused of being a middle-man in a series of computer fraud scams across the country.

He is charged with racketeering, larceny, computer crime fraud, financial transaction device fraud, criminal impostor and possession of tools for forgery, according to the media account.

Police in Colorado began the investigation in September when a local woman reported she has been defrauded of $2,500 by a man claiming to represent a mystery shopper organization. He sent her a check and told her to keep some of the money for herself and to wire the rest of the money to the defendant. She complied, but when she went to cash a second check, her bank informed her that the first check was fraudulent. The victim was out the money she wired during the first transaction.

Police claim they utilized an "unusual number of search warrants" in determining that the money went to the defendant via a wire service. Investigators contend the defendant alternately admitted to the scam and claimed to be a victim himself during several telephone conversations with authorities.

A warrant claims he admitted to 7 to 9 transactions in which he kept 10 percent of the money for himself and wired the remaining funds to another party. Police report gathering information regarding 24 victims and 29 wire transfers, which suggest the defendant received $61,967 and sent $42,774 to other parties, mostly in South Africa.

Continue reading "Florida man charged in out-of-state computer fraud scam" »

The U.S. Supreme Court herd arguments this week with broad implications for everyone who has used an employer's computer or cell phone to send private messages. In a case involving a California police officer who sent racy text messages using a city pager, the court is being asked to determine the extent to which such private communications can be used against citizens by employers, law enforcement and government agencies, according to the New York Times.

As our computer crimes attorneys reported recently in a four-part series published on our Miami Criminal Attorney blog, South Florida is at the forefront of the nationwide battle against computer crimes and the debate over search and seizure of e-mails.

Meanwhile, Congress is set to hold hearings on "much-needed updates" to the Electronic Communications Privacy Act of 1986, Information Week reported.

When the ECPA was originally enacted, computers were in their infancy and Al Gore hadn't quite finished inventing the internet. Today, they are a critical tool in everyday communications, including e-mails, instant messaging and text messaging.

"While the question of how best to balance privacy and security in the 21st century has no simple answer, what is clear is that our federal electronic privacy laws are woefully outdated," said Se. Patrick Leahy, (D-VT), chairman of the privacy act's Congressional oversight committee.

Google, Microsoft and other tech giants are joining privacy advocates in seeking tougher laws that raise standards for government access to online information. Among the changes being sought by privacy advocates are new rules requiring law enforcement agencies to obtain warrants before being given access to e-mails, text messages and other electronic information stored online.

Continue reading "South Florida online privacy at issue in nationwide debate over Electronic Communications Privacy Act" »

Search and seizure of e-mails from homes or businesses in the Miami area and throughout South Florida has become an increasing issue in white-collar criminal cases.

This is the fourth blog in a four-part series on South Florida computer crime. Last week, our Miami criminal defense lawyers examined computer intrusion and the damage caused by malicious computer hackers or those engaged in corporate espionage or the theft of trade secrets.

Instances of government overreaching have grown astronomically since the passage of the Patriot Act in the wake of the Sept. 11 terrorism attacks. Just this week, Salon published a report regarding the U.S. Department of Justice's quest for all e-mails sent or received using numerous Yahoo accounts, despite the lack of a warrant or other disclosed probable cause.

The advent of e-mail and other forms of electronic communication, including text messages, has come with a substantial risk to businesses. These paper trails can last for decades and securing your internal business communications can be vital to protecting your rights. High-profile cases of prosecutions involving electronic communications are plentiful; last year, Detroit's Mayor Kwame Kilpatrick was jailed and removed from office after text messages with a female staffer proved he perjured himself during a sex-scandal investigation.

If you are facing the search or seizure of electronic communications in South Florida, contacting a Miami criminal defense attorney experienced in handling computer crime is a vital step toward protecting your rights, your freedom and your livelihood.

Continue reading "Seizure of e-mail, electronic communications a critical issue for South Florida defense attorneys" »

Every day, criminals invade countless homes and business across the country -- not by burglary or other unlawful entry, but by computer intrusion. The results of hacking, spyware and other malicious computer spying cost billions of dollars each year in damaged computer equipment, stolen company information and credit card fraud, according to the Federal Bureau of Investigation.

This is the second blog in a four-part series on computer crimes. Last week, our Miami criminal attorneys posted a report on auction fraud in South Florida.

Computer intrusion stems from any number of sources, from hackers seeking attention to corporate espionage and the theft of trade secrets.

Such crimes have been readily apparent in South Florida as far back as 2000, when a 16-year-old computer hacker was sentenced to 6 months in a detention facility, according to the U.S. Department of Justice.

"Breaking into someone else's property, whether it is a robbery or a computer intrusion, is a serious crime," said then-Attorney General Janet Reno. "This case, which marks the first time a juvenile hacker will serve time in a detention facility, shows that we take computer intrusion seriously and are working with our law enforcement partners to aggressively fight this problem."

Incredibly, the teen broke into a military computer network used by the Defense Threat Reduction Agency, charged by the U.S. Department of Defense with reducing the threat of biological, chemical, conventional and special weapons.

If a kid can break into one of the most secure computer systems in the nation from the comforts of his Miami home, we must assume that few businesses are safe from the threat of hackers or the covert theft of intellectual property.

In fact, statistics show more than half of computer users have been infected by spyware and 4 of 5 believe it poses a threat to online privacy. Spyware is software that covertly downloads onto your computer and tracks your movements across the Internet. Some programs are even able to search your computer for personal information, such as credit card numbers or passwords.

Often, a victim does not even realize they have been victimized until a computer problem, unauthorized credit-card charge or other problem alerts them to the computer intrusion.

Continue reading "South Florida computer intrusion involves businesses, unsuspecting consumers" »

Internet auction fraud, and fraud involving online auction sites like eBay, continues to make news in the Miami area. As we reported last week on Miami Criminal Attorney blog, online auction fraud is a significant contributor to the 336,655 Internet crimes reported nationwide in 2009. In all, Internet fraud cost $560 million last year.

Auction fraud involves fraud attributed to misrepresenting a product for sale through the Internet or failure to deliver or pay for a product purchased through an Internet auction site.

Nearly 3 in 10 Internet criminals identified last year were residing in Florida -- more than any other state in the nation except California. And in February, a former Miami-Dade man was sentenced to 5 1/2 years in prison for scamming eBay customers out of hundreds of thousands of dollars, according to the Miami Herald.

The following behavior can provide warning signs about possible fraud:

-Sellers who claim to be auctioning an item from within the United States but then claim to winning bidders to be outside the country for business reasons, or because of a personal emergency.

-Be aware of sellers who post an item for sale under one name but request payment under a different name.

-Sellers who request money be directly wired by Western Union, MoneyGram or bank wire transfer. Payment by this method is virtually unrecoverable and offers no recourse for victims who do not receive promised merchandise.

-Sellers acting as company representatives or authorized dealers who are located in foreign countries where such dealers would not be located.

-Buyers requesting shipping or other arrangements for payment or delivery that are designed to avoid customs, taxes, etc., should be avoided.

-Be suspicious of credit card payments where the address of the card holder does not match the shipping address. Always secure cardholders permission before shipping any products.

eBay offers its own advice and resolutions center, available by clicking here.

Continue reading "Internet auction fraud a growing concern in Miami" »

Authorities contend that 3 of every 10 U.S. computer crimes originated in Florida last year in cases where an arrest was made.

The number of Miami residents victimized by computer crimes continues to increase, even as state, local and federal governments continue to pour resources into the prosecution of white-collar computer crimes in Miami. And, as the focus on computer crimes continues to grow, so do the instances of wrongful arrest. In this series, the Miami defense attorneys at Barakat, Jacobs & Associates will look at eBay and computer auction fraud, computer intrusion and search and seizure of e-mails.

Just this week, Reuters News reported that one of the world's most notorious computer hackers, a 28-year-old college dropout from Miami, was sentenced to 20 years in prison after pleading guilty to charges accusing him of helping to run a global computer fraud ring that stole tens of millions of dollars in credit card numbers.

The cost of computer fraud crimes was $560 million in 2009, while the number of crimes has exploded, from fewer than 20,000 in 2000 to 336,655 last year, according to the Internet Crimes Complaint Center.

Nearly 30 percent of all suspected Internet crimes originated in Florida in 2009, more than anywhere in the nation except California. The federal government reports the top financial crimes online continue to be non-deliver/non-payment of merchandise, e-mail scams, identity theft, credit card fraud, auction fraud and purposeful damage of computers through malware, viruses or other attack.

Continue reading " Miami computer crimes, Internet fraud crimes, on the rise" »

People, police included, make up their minds fast, like traffic through Miami. Once they decide that a particular client is a target of the investigation, it is an uphill battle for a lawyer to shake that belief. This is particularly true in a white collar case where the evidence consists so much more of flat paper and less of people with depth, personality and degrees of guilt or innocence. Investigators that have found a theory supported by the evidence are unlikely to have that belief shaken by protestations of innocence.

A polygraph is one thing that can make a dent. Now, it is certainly true that the polygraphs are inadmissible. It is also true that the test itself can be manipulated. They are subject to human error and human interpretation. For this reason it is critical to use an examiner that has an excellent reputation known to the police. There's nothing worse than presenting a polygraph taken by someone who the police think is a hired gun. However, if a suspect subjects himself to a polygraph examiner who is believed to be unbiased and comes through with flying colors then the attorney has a real opportunity to make progress.

First a client's willingness to take a polygraph speaks volumes about their sincerity. Second the results of that polygraph give the investigative officer something solid, some piece of paper to set against the other paper evidence. At that moment, and sometimes for the first time, the investigator has a reason to look for another theory. An attorney worth anything at all, had better have a compelling alternate theory at the ready.

Florida Courts have never determined that a polygraph is sufficiently accurate to be admissible. However, according to the Florida Supreme Court in Delap v. State, if both parties waive their objections to the test it can be admitted. So, if you have a client who is very confident that they will pass a polygraph. And by that I mean one that has already taken and passed a polygraph, you may seek a deal with the prosecutor that says the client will take a polygraph with an examiner that both attorneys agree upon and whatever the results are, you will agree to their admissibility.

This is strong evidence that not only the suspect, but the attorney really believes that the accused is innocence. Even the most hardened prosecutor has to take a step back and reconsider whether they have the right suspect. This might not only help you win the case, but prevent charges from ever being filed in the first place.

Miami Florida is fortunate to have some of the most sophisticated computer crimes lawyers and law enforcement personnel in the country. The US Attorney, State Prosecutor, FBI, Secret Service, Miami-Dade Police Department and City of Miami Police Department all have specialized units and personal dedicated to investigating and prosecuting Digital Crimes. So why is it that so many of South Florida Crimes seem to be limited to solicitation and e-bay fraud instead of intrusion, hacking, theft of service or the spreading of malicious code.

The answer is simple: corporate victims of computer criminals are often concerned with the PR ramifications of letting the public know about an investigation. I say an investigation not a prosecution. A prosecution shows the corporate victim after they catch the intruder taking affirmative steps to punish the person who dared test their security. An investigation on the other hand is much more nebulous.

During an investigation, no one knows who the perpetrator was. More questions than answers are presented. Not only is the company's security called into question: there is tremendous speculation as to who the intruder is and how they gained access. Were they an employee? Were they a competitor? Is this the first in a series of attacks? Most corporate victims do not want the distraction of having to answer these questions, let alone deal with the fear the unknown answers can cause among their clients and employees.

For this reason it is critical to have an understanding with the investigating agency that the existence of the investigation and the name of the victim will be kept secret until an arrest is made. The members of the Miami Electronic Crimes Task Force have repeatedly professed their commitment to maintaining media silence during the investigation of computer crimes. This makes good public relations sense and follows sound investigative policies.

It is critical that the victim, either directly or thorough their attorney, communicate that desire, not only to the investigating officer, but to the individuals responsible for speaking to the media. In this way, the corporation can control what kind of press release is made and when. By doing so, they can announce that they have captured the perpetrator and make the release a celebration of their responsiveness rather than a roast of their security.

Miami resident Albert Gonzalez pleaded guilty to 20 criminal counts of conspiracy, computer fraud, wire fraud and access device fraud and aggravated identify theft in the Federal District Court in Boston. Mr. Gonzalez's sentence is not known at this time. However, the plea agreement that his lawyers reached with Federal prosecutors includes a proposed range from 15 to 25 years in Federal prison. His criminal sentence will be imposed on December 8, 2009.

This case is multijurisdictional as Gonzalez and his co-conspirators hacked into retailers in multiple states. Accordingly, while he has resolved the counts in Boston he is still facing charges Newark, New Jersey. Additionally, Gonzalez has already been convicted of in Brooklyn, New York where he faces up to 20 years in prison. By agreement between his attorneys and the Federal prosecutors in New York and Massachusetts, those two sentences are to run concurrently.
Gonzalez and his co-conspirators used computers to hack into major retailers such as BJ's, Boston Market, Sports Authority and several others. Once there, they installed "sniffer programs" to capture packets containing credit and debit card information traveling over the retailers network.

Once consumers' credit card numbers were known, Gonzalez sold them to other criminals who encoded the magnetic strips on phony credit and debit cards. In the course of this scheme they stole thousands upon thousands of dollars directly from ATM's. As part of this plea agreement , Gonzalez will be forced to forfeit property that was gained in connection with this crime as well as paying restitution. That restitution includes a million dollars in U.S. currency that was buried in his back yard.

Gonzalez is alleged to have stolen in excess of 130 million credit and debit card numbers. The scope of this crime and multiple jurisdictions involved demonstrate why it is imperative for the Federal authorities to work together to investigate these crimes. However, it is not always clear which agency is responsible. For crimes of this nature both the FBI and the Secret Services, created from the treasury department, have jurisdiction. Often times it is exactly this uncertainty that prevents these complicated crimes from being investigated and prosecuted.

DOJ: Miami Man Pleads Guilty To Hacking US Retail Networks, By Chad Bray, Of DOW JONES NEWSWIRES, September 11, 2009