Identity Theft

Recent Computer Hacking Cases in the News

Published on: November 24, 2024 | By Conaway & Strickler, P.C.

Recently, Robert Purbeck of Idaho, also known as “Lifelock,” and “Studmaster,” was sentenced to ten years after pleading guilty to federal charges of computer fraud and abuse. He hacked into the computer servers of the City of Newnan, Georgia and a Griffin, Georgia medical clinic, and then targeted at least 17 other victims across the United States – in the process stealing personal information of more than 132,000 individuals. He also attempted to extort a Florida orthodontist for payment in Bitcoin, threatening to disclose stolen patient records and other personal information.

“Cyber extortion is unfortunately a rapidly growing threat and highlights the ever-growing need for corporations to remain vigilant in cybersecurity efforts,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This sentencing is just one example of the FBI working together to hold criminals that hide behind their computers accountable, regardless of their location.”

According to information presented in court, in June 2017, Purbeck purchased access to the computer server of a Griffin medical clinic on a darknet marketplace. He then used the stolen credentials to illegally access the computers of the medical clinic and removed records that contained the sensitive personal information of more than 43,000 individuals, including names, addresses, birth dates, and social security numbers.

The New FINCEN Rule for Residential Real Estate: What it Means for Investors and Legal Compliance

Published on: September 18, 2024 | By Conaway & Strickler, P.C.

Recently, the Financial Crimes Enforcement Network (FINCEN) issued a pivotal final rule aimed at tightening regulatory oversight in the residential real estate sector. This change marks a significant step towards enhancing transparency in an industry that has, until now, been relatively free from such regulatory scrutiny. Generally, the new rule requires certain real estate professionals to report information about non-financed transfers of residential real estate to legal entities or trusts.

What Is the New FINCEN Rule?

FINCEN’s new rule extends Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligations to investment advisers involved in residential real estate transactions. The aim is to prevent illicit financial activities in an industry known for large cash transactions that can serve as vehicles for money laundering, fraud, and other financial crimes.

Suspicious Activity Reports (SARs): What Triggers Them and How to Respond

Published on: September 13, 2024 | By Conaway & Strickler, P.C.

In the world of banking and finance, the term “Suspicious Activity Report” (SAR) may sound intimidating—especially if you’ve been notified that a bank has filed one concerning your transactions. For individuals and businesses alike, it’s essential to understand what a SAR is, what activities can trigger these reports, and the potential legal consequences that may follow.

What is a Suspicious Activity Report (SAR)?

A Suspicious Activity Report (SAR) is a document that financial institutions are legally required to file with the Financial Crimes Enforcement Network (FinCEN) when they detect potentially suspicious behavior involving financial transactions. Once filed, these reports are sent to FinCEN, a division of the U.S. Department of the Treasury, which shares the information with law enforcement agencies for further investigation if necessary.

The Truth Behind the TikTok “Free Money Hack” Trend: What You Need to Know

Published on: September 13, 2024 | By Conaway & Strickler, P.C.

In the age of social media, viral trends come and go at lightning speed. Some are harmless and fun, but others can lead people into serious legal trouble. One of the most alarming trends recently circulating on TikTok is the so-called “free money hack.” This trend falsely promises easy money through exploiting banking loopholes, but what many don’t realize is that following such advice could land you in serious legal trouble.

What is the “Free Money Hack”?

The trend usually involves TikTok users claiming they have found ways to manipulate the financial system, offering viewers methods to “hack” or exploit bank accounts, cash apps, or credit systems to obtain free money. Some of these schemes involve:

How is White Collar Crime Generally Prosecuted?

Published on: July 10, 2023 | By Conaway & Strickler, P.C.

The Department of Justice investigates and prosecutes cases where large amounts of money is alleged to have been taken. Examples of white collar crimes are money laundering, bank, wire and mail fraud, tax evasion, insider trading, insurance fraud, mortgage fraud, bribery and embezzlement. Of course Homeland Security, the FBI, the IRS, Customs and Border Patrol and SEC can also investigate and prosecute cases of fraud as well.

The government has a special United States Guideline Chapter dedicated to “basic” economic offenses. For purposes of this blog, this chapter will be discussed in more detail below. As with anything involving federal criminal litigation, nothing is crystal clear in the law. Therefore, there is also a chapter in the United States Guidelines dedicated to tax offenses, election fraud, gambling, and money laundering in the United States Sentencing Guidelines.

This USSG chapter DOES cover extortion, bribery, kickbacks, counterfeiting, embezzlement, health care fraud, computer fraud, insurance fraud, securities fraud, mortgage fraud, identity fraud, bankruptcy fraud, etc. What is most important in this chapter is the loss amount. All charges start off with a base offense level of 6 or 7 depending on the statutory max of the offense charged. Then, you look at what the “loss amount” is using the below table.

Loss (apply the greatest)	Increase in Level
(A) $6,500 or less	no increase
(B) More than $6,500	add 2
(C) More than $15,000	add 4
(D) More than $40,000	add 6
(E) More than $95,000	add 8
(F) More than $150,000	add 10
(G) More than $250,000	add 12
(H) More than $550,000	add 14
(I) More than $1,500,000	add 16
(J) More than $3,500,000	add 18
(K) More than $9,500,000	add 20
(L) More than $25,000,000	add 22
(M) More than $65,000,000	add 24
(N) More than $150,000,000	add 26
(O) More than $250,000,000	add 28
(P) More than $550,000,000	add 30.

The loss amount is a pandora box of confusion and the government is able to add all kinds of relevant conduct and intended loss conduct to inflate these numbers.

To further make things complicated, there are enhancements in this section that permit the government to add levels for things such as the use of sophisticated means, role in the offense, number of victims, a defrauding a charity, mass marketing, among others.

Navigating the federal criminal system is a task that should not be endured alone. Contact our team today for more information about we can protect your rights and your freedom.

Covid Related Fraud Enforcement Update

Published on: February 19, 2023 | By Conaway & Strickler, P.C.

On May 17, 2021, U.S. Attorney General Merrick Garland announced the establishment of the COVID-19 Fraud Enforcement Task Force.

On March 10, 2022, Garland announced Associate Deputy Attorney General Kevin Chambers as the Director For Covid-19 Fraud Enforcement.

In August, 2022, President Biden signed laws that give the Department of Justice and other federal agencies more time to investigate and prosecute Covid-19 fraud. It extended the statute of limitations for fraud charges involving PPP and EIDL fraud to ten years.

How can I be charged with 18 U.S. Code § 1028A Aggravated Identity Theft?

Published on: January 22, 2023 | By Conaway & Strickler, P.C.

Here is the definition from the statute, cut directly from the 11th circuit’s jury instructions:

It’s a Federal crime to commit aggravated identity theft.

The Defendant can be found guilty of aggravated identity theft only if all the following facts are proved beyond a reasonable doubt:

Covid-19 Fraud Enforcement Task Force established

Published on: May 26, 2021 | By Conaway & Strickler, P.C.

The Department of Justice just announced that U.S. Attorney General Merrick B. Garland created COVID-19 Fraud Enforcement Task Force to enhance enforcement efforts against COVID-19 related fraud.

Cases have included:

Offers to purchase COVID-19 vaccination cards

Identity Theft: Two face insurance fraud charges in Georgia

Published on: May 6, 2015 | By Conaway & Strickler, P.C.

Identity Theft: People do what they think they need to do to make ends meet. However, if a person commits a crime, even a non-violent crime, he or she may end up in serious legal trouble. This can even result in significant time behind bars. This is what one woman and her brother are facing after being arrested for insurance fraud in Georgia.

The woman was working as an insurance claims adjuster and is being accused of abusing her position at the insurance company for which she was working. The Georgia Insurance Commissioner announced that the woman was arrested for allegedly stealing thousands of dollars from her former employer. The woman’s brother was also arrested for his role as a suspected accomplice.

Both of the suspects are charged with seven counts of theft, seven counts of insurance fraud and three criminal counts of identity theft. Apparently, the woman was producing fraudulent accident claims using her brother’s name and then issuing him settlement payments, according to the latest reports. Investigators claim that the woman’s brother received almost $80,000 between 2011 and 2012.

Identity Theft: The government is getting aggressive

Published on: December 17, 2013 | By Conaway & Strickler, P.C.

The government is getting aggressive in its fight against fraud and identity theft cases. See Tax Return Preparer Convicted of Identity Theft as an example. At Conaway & Strickler, we have handled many identity theft and fraud cases. A criminal identity theft case can begin in many ways, such as being arrested trying to cash a fraudulent check at the bank. Or, a person could be pulled over for a traffic infraction. Once pulled over, a search by the police may turn up multiple IDs, multiple credit cards, etc. The arrest may begin at the state level, but the fe ds then work to build a federal case against you while they have you stuck under the conditions of a bond. The biggest piece of advice we can offer if that person is you is DON’T SAY ANYTHING. There are potential motions we could argue that could benefit your case. The more statements one makes, the more information the government gains. Contact Conaway & Strickler ASAP so that we can guide you to a positive resolution to your case.

Another issue one could face is the concept of “relevant conduct”. If you are involved only peripherally, you could face an indictment with all co-conspirators, and thus face the sentencing guidelines related to the TOTAL loss amount by each individual involved. Once again, it is imperative that you contact a lawyer as soon as you can, to avoid the many pitfalls in navigating the criminal justice system.

As you can see in the example case cited above, that individual chose to use his constitutional right to a jury trial, and lost.