Texas Attorney General Greg Abbott on Thursday charged Petroleum Wholesale LP, Sun Development LP and related defendants with unlawfully defrauding their customers by diluting medium and premium grade gasoline with regular unleaded fuel.

The defendants, both based in the Houston area are charged with falsigying octane levels, defrauding their customers and violating the Texas Decptive Trade Practices Act. 

The lawsuit is the third enforcement action by the state against the company.  Last year a Harris County jury returned a $30 million verdict against petroleum wholesale, accusing it of calibrating its gas pumps to deliver less than a full gallon of fuel. 

In 2009, Petroleum Wholesale was ordered to pay $100,000 for violating state identity theft prevention laws.  Accordin to attorney general Greg Abbott they discovered over 1,000 instances in which the defendants cross dumped fuel at 143 locations across Texas.

Texas Attorney General Greg Abbott takes manipulation or fraud in the market place very serious.  I will not be surprised if he seeks maximum penalties for every single instance of fraud.  As a criminal defense lawyer in Texas I’ve seen many fraud offenses and represented many individuals in both state and federal court. 

My consultations are free and confidential, I’m a white collar criminal defense lawyer prepared and ready to take the state on.  Call me at (210)225-6600.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

A San Antonio man was sentenced Tuesday to three months in federal prison and two years of supervised release for his role in a massive fraud scheme that swindled about $1.5 billion from financial institutions.

Sean William Ragland, 37, a former senior financial analyst with Ocala, Fla.-based Taylor, Bean & Whitaker Mortgage Corp., faced up to five years in prison after pleading guilty in March to one count of conspiring to commit bank and wire fraud. The sentencing was in Alexandria, Va.

Ragland was one of seven people charged in a sweeping scheme that defrauded three banks of more than $2.9 billion, though his role in the conspiracy was “more limited” than some of the others, according to a court filing by the Justice Department.

Federal prosecutors charged that in 2005 Taylor Bean created a lending arm called Ocala Funding LLC that raised money by selling asset-backed commercial notes to various financial institutions. Ocala used the money to buy mortgages from Taylor Bean, once the largest non-depository mortgage lender in the country.

Ragland and others defrauded the financial institutions from 2006 through 2009 by misleading them about Ocala’s financial health. Ragland and Taylor Bean’s CEO created false reports that inflated by “hundreds of millions” of dollars the value of the collateral backing the notes.

“Ragland played a significant role in the Ocala Funding fraud,” prosecutors charged in a June 15 court filing. “He administered the day-to-day activities of the Ocala Funding scheme and was fully aware that his actions were fraudulent.”

On the other hand, prosecutors noted that Ragland raised concerns to his supervisors about the deficit in Ocala Funding on a “relatively consistent basis.” In addition, Ragland had no involvement in other parts of the conspiracy, prosecutors said in the document.

Just when Ragland will start his sentence wasn’t decided Tuesday. He remains free on a $50,000 unsecured bond issued in March. He will have to pay restitution, though the amount hasn’t yet been determined.

Ragland and another person bought a home in November in the Stage Run neighborhood on the far Northwest Side.

If you have been charged with a crime such as DWI, arson, auto theft, etc., please contact the Law Office of Robert I. Kahn at (210) 225-6600 for a free consultation.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

A financial adviser who stole $481,000 from former San Antonio Mayor Henry Cisneros was sentenced Thursday to 41 months in federal prison and ordered to pay restitution.

Fred L. May III, a former Texas A&M University classmate and friend of Cisneros, apologized to U.S. District Judge Orlando Garcia, who could have given him as much as 51 months.

May sought probation and claimed he spent most of the money to help pay for chemotherapy and other medical treatment for his wife that his Tricare insurance would not pay for.

“There’s absolutely no excuse for what I have done,” the 62-year- old retired Air Force lieutenant colonel said. “Again, my apologies for the one client I harmed and the undue publicity it brought on him and his family.”

May was a financial account manager with Planto Roe Financial Services in San Antonio, which offered broker investment services through Securian Financial Services Inc. of St. Paul, Minn. Cisneros became May’s customer in 2000 when May established various accounts for him.

The FBI found that, from October 2004 through August 2007, May transferred $481,000 from Cisneros’ accounts to his personal accounts. May, who pleaded guilty to wire fraud, forged Cisneros’ signature on the transfer orders, the FBI said.

Richard Planto, a partner of Planto Roe and former friend of May, said May “cast a shadow of a doubt on our firm” and left Planto feeling “personally violated.”

Planto’s partner, Charles Eugene Roe, told the judge that May had money in his own investment accounts that he could have used for medical bills.

Planto and Roe said May carried a “very good” lifestyle because he had box seats at the rodeo, three homes and a membership at the Sonterra Country Club, and he traveled to Las Vegas. May downplayed that, saying, for instance, that he did not own the homes all at once.

Securian ended up reimbursing Cisneros $550,000 for his loss, plus interest.

“It’s very damaging to our industry and our firm,” Loyall Wilson, senior vice president of Securian, told the judge.

In February, the Texas State Securities Board reprimanded Securian, saying its procedures didn’t comply with the board’s regulations and assessing the firm a $50,000 fine.

If you have been charged with a crime such as DWI, arson, auto theft, etc., please contact the Law Office of Robert I. Kahn at (210) 225-6600 for a free consultation.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

Three people charged in the Southwest Airlines stolen-ticket scandal were sentenced Thursday to two years of probation.

Lance Williams and Holsey Dewayne Clayton, a former guard at the Bexar County juvenile justice center, each were ordered to pay $40,000 restitution, while David Anderson of Houston was ordered to pay back $60,000 for stolen tickets purchased from former Bexar County Court Bailiff James Jackson and his wife, Althea Jackson.

Althea Jackson was accused of stealing 5,600 special tickets from the airline that she and her husband then sold in San Antonio and Houston. Some were used by judges and other public officials. The Jacksons were sentenced to 30 months in prison.

Last week, Luis Vasquez was ordered to pay $43,000 and Tasha Williams $20,000, and they each got two years of probation. All seven took plea deals. Three others convicted at trial in September of conspiracy to commit wire fraud are awaiting sentencing, while the jury acquitted two others.

If you have been charged with a crime such as fraud, embezzlement, or money laundering.,  contact  white collar criminal lawyer Robert I. Kahn at (210) 225-6600 for a free consultation.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

One of 14 people charged in a scheme to divert money meant for Texas child-support recipients was sentenced Thursday to two years in prison.

Jose A. Serrano, whom worked for Affiliated Computer Services, pleaded guilty to aggravated identity theft and access device fraud.  U.S. Districts Judge Orlando Garza ordered him to pay $7,777 in restitution and to surrender on Nov. 30.

The 14 are accused of taking advantage of an $18.2 million contract the state has with ACS to issue debit cards to Texans who are due child support.  All but one have pleaded guilty.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

A San Antonio couple have been charged with identity theft, bank fraud and conspiracy over allegations they bought several vehicles and jewelry in recent years using stolen Social Security numbers.  David Edward Reyes was released on $10,000 unsecured bond after a hearing Thursday before U.S. magistrate Judge Nancy Nowak.  Reyes told the judge he was a supervisor at CPS Energy, but his lawwyer said his client later told him he mispoke and said he worked for the city of San Antonio,.

He and his wife mary mercy lopez both are named in a 10 count indictment charging them with conspiracy, identity theft and bank fraud.  They both entered a plea of not guilty.  The couple used stolen credits cards to purchase items such as vehicles.   Reyes is also charged with financial institution fraud stemming from the purchase of a 2004 harley motorcycle..  Keep in mind the records show since 2003 they have been purchasing corvettes, cadillacs and other motorcycles using stolen social security numbers.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

A retired colonel who led a major air force medical division pleaded guilty Thursday  in a case alleging a multimillion dollar fraud against the military.  Sidney Brandler once  commanded the Air Force medical Support agency at brooks City Base, which oversees the air force surgeon general’s policies and medical support capabilities.

Brandler struck a plea deal with prosecutors and pleaded guilty to misprison of a felony, that is not reporting a crime he knew was occuring.  Brandler faces up to three years in prison at his sentencing June 24th and agreed to be held responsible for $541,773 in restitution.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

Sec. 32.52.  FRAUDULENT, SUBSTANDARD, OR FICTITIOUS DEGREE.  (a)  In this section, “fraudulent or substandard degree” has the meaning assigned by Section 61.302, Education Code.

(b)  A person commits an offense if the person:

(1)  uses or claims to hold a postsecondary degree that the person knows:

(A)  is a fraudulent or substandard degree;

(B)  is fictitious or has otherwise not been granted to the person; or

(C)  has been revoked; and

(2)  uses or claims to hold that degree:

(A)  in a written or oral advertisement or other promotion of a business; or

(B)  with the intent to:

(i)  obtain employment;

(ii)  obtain a license or certificate to practice a trade, profession, or occupation;

(iii)  obtain a promotion, a compensation or other benefit, or an increase in compensation or other benefit, in employment or in the practice of a trade, profession, or occupation;

(iv)  obtain admission to an educational program in this state; or

(v)  gain a position in government with authority over another person, regardless of whether the actor receives compensation for the position.

(c)  An offense under this section is a Class B misdemeanor.

(d)  If conduct that constitutes an offense under this section also constitutes an offense under any other law, the actor may be prosecuted under this section or the other law.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

Sec. 32.46.  SECURING EXECUTION OF DOCUMENT BY DECEPTION.  (a)  A person commits an offense if, with intent to defraud or harm any person, he, by deception:

(1)  causes another to sign or execute any document affecting property or service or the pecuniary interest of any person;  or

(2)  causes or induces a public servant to file or record any purported judgment or other document purporting to memorialize or evidence an act, an order, a directive, or process of:

(A)  a purported court that is not expressly created or established under the constitution or the laws of this state or of the United States;

(B)  a purported judicial entity that is not expressly created or established under the constitution or laws of this state or of the United States;  or

(C)  a purported judicial officer of a purported court or purported judicial entity described by Paragraph (A) or (B).

(b)  An offense under Subsection (a)(1) is a:

(1)  Class C misdemeanor if the value of the property, service, or pecuniary interest is less than $20;

(2)  Class B misdemeanor if the value of the property, service, or pecuniary interest is $20 or more but less than $500;

(3)  Class A misdemeanor if the value of the property, service, or pecuniary interest is $500 or more but less than $1,500;

(4)  state jail felony if the value of the property, service, or pecuniary interest is $1,500 or more but less than $20,000;

(5)  felony of the third degree if the value of the property, service, or pecuniary interest is $20,000 or more but less than $100,000;

(6)  felony of the second degree if the value of the property, service, or pecuniary interest is $100,000 or more but less than $200,000;  or

(7)  felony of the first degree if the value of the property, service, or pecuniary interest is $200,000 or more.

(c)  An offense under Subsection (a)(2) is a state jail felony.

(c-1)  An offense described for purposes of punishment by Subsections (b)(1)-(6) and (c) is increased to the next higher category of offense if it is shown on the trial of the offense that the offense was committed against an elderly individual as defined by Section 22.04 or involves the state Medicaid program.

(d)  In this section, “deception” has the meaning assigned by Section 31.01.

(e)  With the consent of the appropriate local county or district attorney, the attorney general has concurrent jurisdiction with that consenting local prosecutor to prosecute an offense under this section that involves the state Medicaid program.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions

Sec. 32.32.  FALSE STATEMENT TO OBTAIN PROPERTY OR CREDIT OR IN THE PROVISION OF CERTAIN SERVICES.  (a)  For purposes of this section, “credit” includes:

(1)  a loan of money;

(2)  furnishing property or service on credit;

(3)  extending the due date of an obligation;

(4)  comaking, endorsing, or guaranteeing a note or other instrument for obtaining credit;

(5)  a line or letter of credit;

(6)  a credit card, as defined in Section 32.31 (Credit Card or Debit Card Abuse); and

(7)  a mortgage loan.

(b)  A person commits an offense if he intentionally or knowingly makes a materially false or misleading written statement to obtain property or credit, including a mortgage loan.

(b-1)  A person commits an offense if the person intentionally or knowingly makes a materially false or misleading written statement in providing an appraisal of real property for compensation.

(c)  An offense under this section is:

(1)  a Class C misdemeanor if the value of the property or the amount of credit is less than $50;

(2)  a Class B misdemeanor if the value of the property or the amount of credit is $50 or more but less than $500;

(3)  a Class A misdemeanor if the value of the property or the amount of credit is $500 or more but less than $1,500;

(4)  a state jail felony if the value of the property or the amount of credit is $1,500 or more but less than $20,000;

(5)  a felony of the third degree if the value of the property or the amount of credit is $20,000 or more but less than $100,000;

(6)  a felony of the second degree if the value of the property or the amount of credit is $100,000 or more but less than $200,000;  or

(7)  a felony of the first degree if the value of the property or the amount of credit is $200,000 or more.

(d)  The following agencies shall assist a prosecuting attorney of the United States or of a county or judicial district of this state, a county or state law enforcement agency of this state, or a federal law enforcement agency in the investigation of an offense under this section involving a mortgage loan:

(1)  the office of the attorney general;

(2)  the Department of Public Safety;

(3)  the Texas Department of Insurance;

(4)  the Office of Consumer Credit Commissioner;

(5)  the Texas Department of Banking;

(6)  the credit union department;

(7)  the Department of Savings and Mortgage Lending;

(8)  the Texas Real Estate Commission;

(9)  the Texas Appraiser Licensing and Certification Board; and

(10)  the Texas Department of Housing and Community Affairs.

(e)  With the consent of the appropriate local county or district attorney, the attorney general has concurrent jurisdiction with that consenting local prosecutor to prosecute an offense under this section that involves a mortgage loan.

Law Offices of Robert I. Kahn

111 Soledad St, Suite 1700, San Antonio, TX 78205 (210) 225-6600 Google Review | Website | Directions