Bankers are always asking how to practice due-diligence and file a Suspicious Activity Report (SAR) and not subject their bank and the directors to a lawsuit by disclosing confidential customer information. This, of course, is not new, but due to the Foreign Corrupt Practices Act (FCPA), this is very serious business. The privacy of a customers financial records is a hot topic and worth checking over the rules and the required balance between the customers interests and law enforcement concerns.

In 2000, the SAR form was revised and is easily downloaded from the Financial Crimes Enforcement Network. New Changes incorporate information concerning computer intrusions and there are more ‘check boxes’ for a more accurate completion.  Figuring out when to file a SAR, is a financial institutions priority. Always file when there is a discovery of Insider abuse no matter what the amount; violations aggregating $5,000 or more when a suspect can be identified, or aggregating $25,000 even if there is no substantial basis for identifying a suspect, any transactions aggregating $5,000 or more that involves a potential money laundering or the violations of the Bank Secrecy Act (BSA), and any computer intrusion.

The SAR filing requirements cover situations that financial institutions may suspect , know or has reason to suspect a transaction has occurred and involves receiving funds from illegal activities, such as evading BSA regulations by structuring transactions to involve less than the $10,000 currency threshold that requires filing a Currency Transaction Report, or a particular customer is doing business that is not the sort of in which they would normally be expected to engage. If $10,000 is exceeded, both the CTR and a SAR must be filed no later than 30 days after the initial detection of any of the above violations. But, a report can be delayed up to 60 days in order to identify a suspect.

When one has questions about legal matters one speaks with a lawyer, anything about the car a mechanic.  Questions surrounding the recent scandals in New Jersey and New York are best answered by members of an anti-money laundering agency or an anti-corruption agency.  What many criminals do not know about, or perhaps do not consider a concept important to follow through with, but what many of those working to catch those criminals do, is the concept of due diligence.

Due diligence refers to the steps and the procedures in which one takes to know exactly with whom one is doing business.  This just involves taking measures and following steps that those in with we come into contact with and whom with we choose to do business, are trustworthy.  If the men involved in the scams had partners that were trustworthy, they would not have been captured.  One of the key witnesses in breaking the case, as well as the one who will testify is Solomon Dwek.

Dwek was arrested in 2006 by the FBI, in a case of fraud that totaled upwards of a couple million dollars.  His case is not resolved, but he had been wearing a wire when helping the resolution of the ten year investigation into the racketeering and the fraud involved in Brooklyn and New Jersey.  Any person considering Dwek’s credibility would have noticed something was amiss, and considered as well as sufficiently research the idea that he might have turned state’s witness, might have gone to the side of the lawmen in order save himself, given the status of his case at that time.  But none of them did.  Not even the highest of the criminals, the one in charge thought to have Dwek checked out.

One of the first clues was upon their first meeting when Dwek suggested that he be the consultant on the heist.  Now, one in the know may either think that the man either did not have enough experience to suggest that someone else take this tedious role, one in which is notable to law enforcement agencies, or they would maybe have considered the fact that he was working undercover in order to save his own skin.  These men that were arrested a few months ago will be spending a lot of time in jail, and one of the reasons for that is that they did not investigate the people with whom they were doing business.

The Foreign Corrupt Practices Act was created in 1988 by officials from thirty three countries, including members of the United States Congress, in an attempt to bring an end to corruption, bribery, and extortion on the international business level, focusing on the financial institutions of the world. For many years official and military personnel had been extracting payments from foreign companies in exchange for securing business opportunities. This created not only corruption on the level of business but on the local level as well, for while these officials gained wealth and power in the acts of extortion, the economy and the people of their countries suffered greatly. One of the challenges of dealing with foreign cultures, is that they have different perceptions of what actually constitutes a bribe. Many counties practice gift giving in the form of favors or presents as a part of their customs.

However, in the United States this too is considered bribery. It is the act of giving one preferential treatment and opportunity over another, at the personal gain of the one extorting the favor, the gift or the payment. The regulations of the FCPA have served to take the weight of offending a foreign official off of the American officials and the financial institutions. The federal law of the United States is such that these forms of payment in exchange for opportunity are illegal and subject to fines and prosecution. By taking this out of the hands of those conducting business affairs it serves to not only ensure that no laws are being violated, but that the companies and those in the middle of the situation have a valid reason for not partaking in such actions. Since the years of the inception of the Act, authorities have prosecuted many criminals who were committing crimes of extortion, money laundering and terrorist funding. This is not only serving to make the world a safer place, but a more ethical one as well.

Any successful Las Vegas law firm will understand through intuition, business savvy, and an incredible program, the importance of surrounding themselves with not only a staff of skilled and talented employees, but surrounding themselves with a diversity of operating mechanisms, meaning people who go about attending to challenges and problems in a variety of manners.  What is necessary for the success of any court case, any business, any company, or any aspect of life really, is the ability to adapt to an ever changing environment. 

When a lawyer begins to put together their team, they must become aware to the fact, that while like attracts like, different is necessary.  In order to successfully solve any problem, linear thinking must converge with creative ideas.  Machiavelli made observations in the 1400’s about human behavior, noticing that while a problem may be easy to cure, it may be difficult to diagnose.  Much like taking an aspirin for a headache…sure the headache may disappear, but what caused it may remain, under the surface and ready to emerge again at any given moment.  

One way we all go about become diverse, is to learn a new skill.  There are workshops in drawing for writers, and writing for draftsman.  This brings one in touch with different coping mechanisms and ways in which one will find options and solutions when confronted with the ups and downs, not only of the world of litigation, but of life in general.  Logical skills include effective time management and the assessment of short versus long term goals. 

Also included is in one’s ability to learn new skills in areas in which they may not be familiar.  One perfect combination is intuition and data.  Gut feelings are accurate, as long as emotions are not involved.  Intuition is best backed up with data, and vice-versa.  It is a delicate balance, but one that is easy to attain.

A wave of mortgage fraud is rippling through pockets of the Valley, inflating home values through scams called cash-back deals. Left unchecked, cash-back deals cost homeowners and lenders millions of dollars and could erode confidence and values in Arizona’s real estate market.

When an investor or lender preys on homeowners, charging them outrageous fees and interest rates for a loan, it’s called predatory lending. It’s an unethical practice, though difficult to prosecute because there isn’t a specific law making it illegal in Arizona.  But if regulators can prove groups are operating illegally as lenders, they have more leverage to stop them.  There are experienced Phoenix lawyers who can help you if you’re in need of help with these types of situations.

The mortgage fraud task force was formed by regulators and law enforcement to thwart cash-back deals, and is also is targeting foreclosure-rescue scams and illegal short sales.  There are Phoenix law firms who are becoming well-versed in handling these types of spurious cases. Cash-back deals involve getting a mortgage for more than a home is worth and pocketing the extra money in cash. The deals inflate home values and leave some homeowners stuck with overpriced mortgages.

Legislation to deter foreclosure-rescue fraud was introduced in Arizona this year but dropped because some don’t think more laws are the answer. At least ten states, including California, have laws to deter foreclosure-rescue fraud. A task force is being formed to draft new Arizona legislation.  “I am waiting for regulators to combine legislation for both the subprime and predatory problems. There are Valley homeowners who got taken advantage of when they bought homes,” said Jay Butler, director of realty studies at Arizona State University Polytechnic. “Now they are getting taken advantage of and losing those homes.”

Phoenix lawyers have been paying particular attention to this most recent of phenomena, due to the Valley being prime territory for questionable subprime loans, and the resultant crisis which has plagued the nation. Many Phoenix, Arizona lawyers can help you with advice, counsel or referral to other associated real estate law firms who can handle illegal short-sell cases.

The Valley’s high-velocity housing market of 2004-2005, and stiff competition among lenders who let buyers put almost nothing down on a home, created the opening for these cash-back deals. Now, as the housing market has slowed, buyers find they can’t resell their homes for what they paid. Foreclosure notices for those struggling buyers as well as speculators who have pulled money out of homes are climbing.

“Arizona was like a housing gold rush for speculators from California, Florida and Texas a few years ago,” said Detroit real estate agent and fraud activist Ralph Roberts, author of the book Flipping Houses for Dummies. “But home prices stopped climbing, and speculators got greedy. Now the cash-back scam is going to make the savings and loan crisis of the 1980s look like a soft landing.” (The Arizona Republic, Jan. 20, 2007)

Seek out a competent Phoenix lawyer if you suspect there was fraud in your real estate situation. There are many respected Phoenix law firms to choose from in the Valley, who are on your side in seeking just compensation.