Partial Verdict in Helio Castroneves case

The jury has reached a verdict on all counts as to the lawyer, Alan Miller. That verdict form has been placed in a sealed envelope. The jury has also reached verdicts on 3 counts as to Helio Castroneves and 2 counts as to his sister. The jury has been told to continue deliberating on the other 5 and 6 counts, respectively. Judge Graham gave the infamous "Allen charge" to the jury, otherwise known as the dynamite charge. More to come soon, I bet...

This can't be real, can it?

From the Sun-Sentinel:

With thick tape wrapped around his face, his hands bound and layers of shrink-wrap pinning him to a chair, the 17-year-old abductee was threatened with a blowtorch.His mother stood by, pleading on the phone for her ex-husband to pay the kidnappers.For the teenage captive, the ordeal inside a South Florida mobile home was very real. But for his mother, the FBI said Tuesday, it was all an act.According to a federal criminal complaint, the woman, with her boyfriend and his nephew acting as accomplices, staged the abduction last week in a bid to extort $50,000 from her ex-husband, a Southwest Ranches resident.

Here's what the FBI said happened:

At first, authorities thought they had rescued mother and son, but the teen recognized one of his captors as his mother's boyfriend, the complaint states.When investigators questioned Ponce and Boza, they implicated Arriaza, and all three eventually confessed, authorities said. It was not known Tuesday whether they had hired attorneys, and their relatives either could not be reached or declined to comment.Arriaza's ex-husband, identified in county court records as Hernan Pena, 41, also could not be reached. According to the FBI, it all began with the maternal promise of a meal and a fancy cell phone.Arriaza lured her unsuspecting son to a South Florida Wal-Mart on Thursday afternoon by telling him she would buy him an Apple iPhone and dinner, the agency's criminal complaint said.She intentionally left her white Honda Civic unlocked in the parking lot so Ponce could slip into the back seat with a fake gun, the FBI said. When Arriaza and her son returned to the car, Ponce sprang up, taped over the teen's eyes and ordered his mother to drive to his trailer on Southwest 127th Court in Miami-Dade County. Ponce reportedly called Pena and made ransom demands."During one of the calls, Arriaza informed (her ex-husband) that they were burning their son's feet and implored him to pay," according to the complaint.As Arriaza and Ponce watched, Boza held the lighted blow torch close enough to the teen's leg that it singed the hairs, authorities said.Pena quickly contacted the FBI, and investigators somehow tracked the mother and son to the trailer.

Judge Gold rules Florida law on Cuba travel is unconstitutional

If you wanna go to Cuba, now's a good time to pack your bags. Yesterday Obama eased restrictions on travelling there. And today, Judge Gold issued an Order finding a Florida law making trips there more expensive unconsitutional. Here's the Herald's take:

A federal judge Tuesday morning overturned a 2008 state law that increased registration fees and requirements for travel agencies specializing in trips to Cuba.
U.S. District Court Judge Alan S. Gold's decision comes just a day after the Obama administration announced lifting several travel restrictions to Cuba -- allowing Cuban exiles to visit the Island more than once a year, pushing for use of cellphones on the island and easing requirements for remittences to relatives.
In question was the 2008 Sellers of Travel Act approved by the state Legislature and signed into law by Gov. Charlie Crist. The act required travel agencies in Florida selling trips to Cuba to post up to a $250,000 bond and pay up to $25,000 in registration fees.

In other news, another UBS client who hid assets offshore pleaded guilty. From the Herald:

A Lighthouse Point man pleaded guilty Tuesday in federal court in Fort Lauderdale to filing a false income tax return, as part of a wide-ranging government probe of wealthy clients of Swiss banking giant UBS AG who hid assets offshore.
According to court papers, Robert Moran had $3.4 million in a UBS account in Switzerland as of Dec. 31, 2007, but didn't report to the Internal Revenue Service that he had the account nor declare income from it as required by U.S. law.
Moran, who is founder and president of Moran Yacht & Ship in Fort Lauderdale, faces up to three years in prison and a fine of $250,000.
He held the UBS account in the name of Winter Drive Investments, S.A., a Panamanian corporation that he controlled, according to court papers.
A U.S. citizen who has or controls an offshore bank account worth more than $10,000 is required to say so on income tax returns.
Moran is the second UBS client to face criminal tax charges since UBS agreed in February to provide the United States with the names and account information of 250 to 300 U.S. clients.

Back from Spring Break

Well, spring break is over, and you can feel it -- it already feels like summer outside. I'm already missing the blast of cool air from last week.

This week, we'll be sure to hear the Castroneves verdict.

Last week, I missed the 11th Circuit's opinion in Gen. Noriega's case. Looks like he is headed to France (!!). The Federal Criminal Defense Blog -- run by friend of blog Tom Withers -- has all the details.

Liberty City is still moving along. They've had 36 trial days -- Defendant Batiste is on the stand now...

Vanessa Blum covered the Riolo Ponzi scheme here. She raises the interesting question of whether trustees and receivers do more harm than good for investors. South Florida Lawyers covers a similar question here. Friend of blog David Rothstein in the Blum article:

As attorney David Rothstein of Miami put it: "People who perpetrate Ponzi schemes typically don't keep very clean records."Rothstein represents victims of another alleged Ponzi scheme under investigation in South Florida. In that case, federal regulators say George Theodule of Lake Worth raised more than $40 million, using fresh funds to repay earlier investors.

Theodule misappropriated at least $3.8 million to purchase expensive luggage, electronics, artwork and jewelry, according to a civil lawsuit filed in December by the U.S. Securities and Exchange Commission.Theodule's attorney, Russell Weigel of Miami, said his client disputes the allegations.To the frustration of his investors, Theodule has not been charged with any criminal activity. And according to Rothstein, it's unknown how much of the money entrusted to Theodule is left."Typically, when people live large, the money evaporates," Rothstein said.

Finally, you'll notice a new comment policy on the blog. You gotta sign in first. You can still post under an alias, but I think this will add a bit more accountability. We'll see how it works.

Helio Castroneves case to jury

Here's AP coverage and Sun-Sentinel coverage of the closings. Here's the govt case:

Racing champion and reality TV star Helio Castroneves took part in "a pattern of deception" with his sister and lawyer to avoid paying taxes on more than $5.5 million, a federal prosecutor told jurors Thursday in closing arguments.Prosecutor Jared Dwyer said the group had wealth and success but thought "the rules didn't apply to them" when it came to paying taxes. So, Dwyer said, they funneled Castroneves' income into shell corporations and offshore accounts to hide it from the Internal Revenue Service and shirk a tax bill of roughly $2.3 million."Mr. Castroneves wanted to take advantage of all the opportunities in this country but skipped out on his responsibilities," Dwyer said.

The defense:

In closing arguments, defense lawyers for Castroneves insisted he did not cheat on his taxes and had followed the advice of his attorneys and accountants. They reminded jurors Castroneves has not collected most of the money at issue and would only owe taxes when he is paid."There are mistakes and ignorance at times, but at the end of the day there is no crime," said attorney David Garvin.
***
According to prosecutors, after learning the U.S. firm would withhold 30 percent of his contract for the IRS, Castroneves and his co-defendants diverted the income to a Dutch company to avoid the deduction. Although Castroneves has not yet received the money, he still owes taxes under the constructive receipt rule, Dwyer told jurors.But defense lawyer Roy Black called the government's reasoning absurd. "You pay the taxes when you get the money, that's the bottom line," Black said.The jury is expected to begin weighing the evidence on Friday.

Helio Castroneves closing arguments on Thursday

You gotta know when to hold em...

Check out this cool story about a Yale Law School student who doubles as a professional poker player. From the end of the story:

After graduating from Yale in 2005 with a degree in political science, Selbst pursued a Fulbright Scholarship in Madrid. When she returned the next summer, she turned pro and, within a year, won the first of her World Series payouts, taking her game to the final table of the No-Limit Hold-Em event, which ESPN broadcast, and banking $101,285 for her seventh-place finish.In the summer of 2007, Selbst again reached the WSOP finals and took home $140,000.Before returning to New Haven for law school, on June 12, Selbst won the $1,500 Pot-Limit Omaha event at the WSOP, taking home her first bracelet and $227,933 in winnings"People still say to me, 'Oh, you play poker. Do you make a living at that?'" Selbst says."I'm going to try to make it out for a couple of tournaments, if I can, this summer, but everything is up in the air until I find a summer job. Law school kind of gets in the way of it all."

"In 25 years on the bench I have never seen anything approach the mishandling and misconduct I have seen in this case."

That was Judge Emmet Sullivan today, ordering a probe into the Ted Stevens case. Here's the AP. The coverage of the case is worth a read. From the article:

During Tuesday's hearing, Sullivan read a primer on criminal procedure, the kind of rudimentary lecture students normally receive during their first year of law school.
The judge said he has seen a troubling trend of prosecutors withholding evidence in cases against people ranging from Guantanamo Bay detainees to public officials such as Stevens. He called on judges nationwide to issue formal orders in all criminal cases requiring that prosecutors turn over evidence to defendants.
It was a stinging rebuke of the Justice Department and Sullivan called on Holder to order training for all prosecutors.

In (misconduct) news closer to home, a large internet pharmacy case was dismissed in Judge Zloch's courtroom today. You remember this one -- it's the Google jury... Here's coverage by the Health Care Fraud Blog:

In a stunning development with implications in two large prosecutions, the United States dismissed with prejudice an Indictment against 10 individuals today in a South Florida courtroom, two of whom had already plead guilty and testified in the trial against the other eight defendants. This follows an eight week trial featuring two mistrials, one based on prosecutorial misconduct and also included accusations against the government of witness tampering and the testimony of a federal prosecutor to attempt to refute the testimony that the government gave permission for one of the defendants to operate his business.