Another 5-year cap in the Rothstein web

This time to Frank Preve, the 70-year old COO of Banyon Investments LLC.  Even though the 5-year count in the information is a sure tell that the case has been resolved the DBR reports as follows:

Preve, Rothstein's point man at Banyon, was charged in a criminal information with one count of conspiracy to commit wire fraud. Usually, an information indicates a plea deal has been struck, but Preve's attorney—Ramon A. Rasco, a partner at Podhurst Orsek in Miami—told the Daily Business Review his client hasn't agreed to anything as of yet.
Rasco said the case against Preve is about "omissions," his failure to disclose to investors Rothstein's financial shenanigans in the months leading up to the implosion of the fraud in October 2009.
From July to October 2009, "Preve caused investors and lenders to pay more than $20 million to the Banyon Group by wire transfer for investments in confidential settlements," the information reads.
Rasco noted the information doesn't accuse Preve of having any direct knowledge of Rothstein's settlement financing fraud. "Considering the allegations that have been made against Frank over the years, it is a very, very watered-down version of events," he said.
Preve and Rothstein exchanged thousands of emails, but they met only a handful of times, and Preve did not have an office in Rothstein Rosenfeldt Adler's Fort Lauderdale office as alleged in civil suits, Rasco said.
"He did not have any knowledge of the Ponzi scheme, and he wasn't working with Rothstein, and he certainly did not benefit from it," Rasco said. "What the government is alleging now are basically technical violations."
Rothstein's scam was disguised as an investment strategy where Rothstein would purchase discounted confidential settlements in sexual harassment or employment whistleblower cases.

Homeless man who robbed bank was sentenced...

...to 28 months in prison.

The 71-year old said he robbed the bank to get medical care in prison and 3 squares a day. From the Sun-Sentinel:

A 71-year-old homeless man who said he robbed a bank to get medical treatment and a jailhouse roof over his head was sentenced Friday to two years and four months in federal prison.

George Hernandez was a longtime customer at the SunTrust bank on Fort Lauderdale's North Ocean Drive until February, when he gave a teller a note claiming he had a gun and walked out with $4,980.

He left in a cab, gave $2,000 to a homeless family he had befriended and paid for his motel room and medication for his chronic lung disease, his lawyer told U.S. District Judge Federico Moreno.

Hernandez, who said he drank 12 beers a day, was arrested a few days after the robbery. He used a wheelchair and oxygen tube in court.

The judge said it was a sad case but Hernandez's age and medical problems were no excuse. He recommended Hernandez serve his time in a federal prison hospital.

Judge Kopf to continue blogging

His explanation is here:

After reading every comment I could get my hands on about whether I should continue to blog (including over 500 blog comments of all sorts, especially critical comments from law professors such as those found here and here, lots of e-mails going both ways but more than a few from experienced lawyers agreeing with my friend, contrasted with spirited support from prominent federal practitioners like that found here and here, together with encouragement from two Nebraska state trial judges and two federal district judges from other districts*) and after a sincere and thorough evaluation of my motivations in writing this blog, I have decided to continue.

...

I care deeply about federal judicial transparency, I don’t see much of that and if I quit there would be even less of it and none of it from federal district judges. The implicit assumption of the thoughtful lawyer who wrote me is that mystery and mythology are better for the legal profession and the judiciary than transparency, particularly when the transparency revealed is raw. I profoundly disagree.

On the contrary, that thinking has brought both the legal profession and the judiciary to the brink of disaster. In these polarized times, why should anyone trust us if we judges, particularly federal judges, are not utterly open to examining our motivations and mistakes before the public for whom we serve? Law is not politics, but that assertion now requires proof, not mere belief. ...

Our blog poll called this one.

Pizzi opening statements

The Herald covers them here:

In opening statements, Dwyer argued that Pizzi pocketed bribes from a now-convicted Miami-Dade County lobbyist and the undercover agents posing as sleazy businessmen. By dangling bribes in front of him, they talked the mayor into supporting the federal grant proposals purportedly to spur job growth in his community and the neighboring town of Medley.
Dwyer said Pizzi intentionally grabbed the money and campaign checks to line his pockets — a total of $6,750 — knowing that Miami Lakes and Medley would not be benefiting from any federal grants for a jobs feasbility study.
“This case is about a powerful politician who sold his power, who sold his position,” Dwyer told the jurors.
In Pizzi’s defense, Shohat said the federal case was “horribly flawed” on several levels, including the sting operation’s premise, the FBI’s investigative techniques and the prosecution’s get-rich allegation.
“He didn’t sell his office,” argued Shohat, who is handling the defense with three other lawyers, Ben Kuehne, Michael Davis and Ralf Rodriguez. “He didn’t risk his entire career for $6,750.”

Who says there aren't trials?

Judge Darrin Gayles is already in trial, in this interesting case (via the Sun-Sentinel):

The former president of the labor union local representing maritime workers at Port Everglades in Fort Lauderdale went on trial in federal court Tuesday, accused in a 17-count indictment of using false documents to steal thousands of dollars in union funds.
Darryl Brice "Mike D" Payne, 47, of Sunrise, was president of a union that represents workers who are primarily employed loading and unloading cargo and providing services for the shipping and cruise industries at Port Everglades and elsewhere in Broward County.
Payne used union money to pay for personal travel expenses to Las Vegas, Baltimore, St. Louis and other cities, as well as to buy sports memorabilia, including a signed Miami Heat basketball, according to a 55-page indictment filed in August.
Among the charges are conspiracy to steal union assets, stealing union assets, endeavoring to obstruct justice, mail fraud and making false statements.
The charges carry penalties of between five and 20 years in prison, as well as substantial fines.
Payne, who still works as a crane operator at Port Everglades, was portrayed by his defense attorney Bruce Zimet as a reform-minded labor leader who was targeted by union rivals after he won the presidency of International Longshoremen's Association, AFL-CIO, Local Union No. 1526 in 2007.
The local has more than 800 members, according to its website.
"He implemented change to move the union into the 21st century," Zimet said in his opening statement. "Some were unhappy and formed a campaign to undermine that. Right away they're trying to destroy him."
Prosecutor William Shockley began his case by showing jurors several documents in support of the government's contention that Payne submitted false invoices and work records to cover personal expenses and inflate his years of seniority.
One of the first witnesses to testify was Denise Rodgers, former executive director of the Sistrunk Historical Festival in Fort Lauderdale, a civic organization that had honored Payne in 2008 for what she called his "outstanding contribution to the community."
At a silent auction that year, Payne successfully bid on the signed Heat basketball, a football autographed by former NFL star defensive end Michael Strahan, and a spa massage. The total contribution for all three came to $380, Rodgers testified.
Prosecutors alleged in its indictment that Payne used union funds to pay for those purchases by using a false invoice to lump them in with other legitimate expenses paid to the Historical Festival as charitable donations.
The mail-fraud charge relates to an alleged scheme to deceive officials of the union's pension fund by presenting an altered U.S. Department of Labor document that made it appear as if Payne had received workers' compensation for four years.
In fact, however, Payne had received workers' compensation payments for only about four months, prosecutors allege. Payne submitted the altered document, the government alleges, in order to add years to his seniority and thus increase his pension.

 And the Pizzi case is off and running, with opening statements this morning (via The Miami Herald):

In opening statements, prosecutors will argue that Pizzi pocketed bribes from a now-convicted Miami-Dade County lobbyist and undercover agents posing as sleazy businessmen. They persuaded the mayor to support bogus federal grant proposals purportedly to spur job growth in his community and a neighboring town.
They will contend Pizzi intentionally grabbed the money to line his pockets -- a total of $6,750 -- knowing that Miami Lakes and Medley, where he worked as the town attorney, would not be benefiting from any federal grants.
Pizzi’s defense team will counter that he did not receive some of that cash from the lobbyist, Richard Candia, and the FBI undercover agents claiming to be executives of the phony grant-writing business, Sunshine Universal.
His attorneys will also assert that Pizzi did accept some of that money, but it was a legitimate reimbursement for his own political campaign expenses.
And, they will argue that Pizzi always believed that the federal grant proposals would help Miami Lakes and Medley -- and that they were not a scam.

It's supposed to be summer time!