Florida Criminal Lawyer Blog

Our Fort Lauderdale property tax assessment appeal attorneys were not surprised to see that South Florida homeowners are upset about property tax increases. According to an Aug. 28 article in the Miami Herald, proposed tax notices are arriving at homesteads throughout Miami-Dade and Broward County, and some property owners are upset at the increases they’re receiving. As a result, the newspaper said, thousands are calling their county property tax appraisers to complain, and some even took to Miami’s streets Aug. 27 to protest the increases. One homeowner advocate in Broward County said homeowners were “absolutely flipping out.”

The problem is the bad economy, which drove both the tax increases and the protests. The Herald said many Florida cities are raising their property tax rates by 20% or more because home prices have plunged dramatically, which means cities will lose tax revenue. However, the same bad economy means many homeowners are facing their own financial squeeze: loss of equity in their homes, loss of investment value and a high rate of unemployment. Possibly as a result, the Broward County assessor’s office had received more than 14,000 phone calls and visits since Aug. 17. Tax increases highlighted in the article were as high as $300 a year; the article said the increase would be about $150 for a homesteaded $164,000 home.

Tax rates are set by cities and counties and can be hard to challenge. But as the article notes, property owners who believe their properties are overvalued have the right to challenge that assessment -- and potentially lower their taxes -- with an appeal. In this process, homeowners apply for a hearing before a board of independent property assessors without a connection to the county government. This board’s job is only to determine whether the assessment being challenged reflects the fair market value of the property as of January 1. If homeowners disagree with the board’s decision, they may file lawsuits in Florida civil court. Deadlines for requesting this hearing vary by county, but are generally about a month after the notice was mailed.

At Balliro, Galasso, Leskovich & Seltzer, we offer help for homeowners navigating the bureaucratic and sometimes complicated appeal process. Right away, we can help by making sure clients don’t miss the one-month deadline -- which can take away their right to challenge the assessment. We can also represent you at the Value Adjustment Board hearing, helping to build a strong case that your property was overvalued. Getting involved early also helps our Fort Myers property tax appeal lawyers prepare for filing a civil case, if necessary, to challenge an adverse decision by the board. The county and city governments have multiple lawyers working to justify their decisions; hiring your own attorney is just one way to even the playing field.

Continue reading " Property Tax Assessment Bills Spur Protests and Assessment Appeals in South Florida " »

As Fort Lauderdale cyber crime criminal defense attorneys, we noted with interest that a Miami man is the U.S. connection to two of the largest data breaches in U.S. history. USA Today’s TechnologyLive blog reported Aug. 18 that Albert Gonzalez of Miami is accused of hacking in two separate data breaches that exposed more than 100 million credit card records to identity theft. Gonzalez is allegedly one of 10 people from around the world charged with stealing 94 million credit card records from databases at TJX, parent company to clothing stores TJ Maxx and Marshalls. He and two Russian accomplices are also accused of separately breaching 130 million records from four payment processing companies, including Heartland Payment Systems.

According to USA Today, Gonzalez was known as part of the online community of malicious hackers since at least 2002. This allowed him to connect with hackers from other countries, particularly from Russia, where cyber crime in general and identify theft in particular are burgeoning industries. He joined a group that specialized in stealing credit card account information, which they could then sell to money launderers who use it to buy things or extract cash from ATMs using other people’s bank accounts and credit. Another Miami man, Irving Escobar, is accused of leading a ring of money launderers in that scheme, using the information from the TJX security breach.

Complicating matters is the fact that Gonzalez had acted as an informant for the Secret Service before he was charged in the TJX breach. Investigators now believe he was actually acting as an agent for the hackers, passing along information about law enforcement activities. The article said it was unclear whether Gonzalez was the ringleader of the group or an employee; the other hackers were not named, are foreign nationals and may be difficult to find or extradite. Gonzalez was taken into custody after the TJX breach, making it unlikely that he could have actively participated in the Heartland breach. Nonetheless, he is expected to face charges in that case after trial for the TJX-related charges.

As Sarasota cyber crime defense attorneys, we have read about many similar schemes involving people in the United States working on behalf of overseas ringleaders. In some cases, these people are led to believe they have legitimate jobs and are doing nothing illegal, only to find themselves charged with a crime or their bank accounts frozen. That’s not true in Gonzalez’s case, but it could be true for hundreds of other Americans who are not Internet-savvy and eager for jobs in this bad economy. We believe it’s our job as Fort Myers cyber crime criminal defense lawyers to aggressively defend these innocent people -- who are often victims themselves -- when they are swept up in prosecution really aimed at overseas hackers.

Continue reading " South Florida Man Charged for Hacking as Part of Ring Accused of Two Largest Data Breaches in U.S. History " »

As Fort Myers tax evasion criminal defense lawyers, we have watched the federal government’s lawsuit against Swiss bank UBS very closely. The federal government sued UBS, one of the largest Swiss banks in a country known for its banking privacy laws, after reaching a settlement in a related criminal case in which UBS admitted to helping Americans evade their taxes. In the newer suit, the IRS sought the names of thousands of U.S. taxpayers with accounts at UBS, in order to ferret out possible tax crimes. As we wrote earlier this week, that case has finally settled -- and this week, the parties said UBS will disclosed 4,450 names of American taxpayers as part of the settlement.

The 4,450 names are less than 10% of the 52,000 names originally sought by the IRS. However, the exact criteria for deciding which names will be disclosed have not yet been released. And observers expect the federal government to continue its aggressive efforts to stamp out tax fraud by prosecuting all of these taxpayers, if it believes have committed tax crimes.

In response, Bloomberg News reported Aug. 21, American taxpayers with UBS accounts are rushing to disclose the existence of their accounts to the federal government before the government can come to them. For five months, the IRS has offered taxpayers a kind of amnesty through a voluntary disclosure program, in which taxpayers admit the existence of these accounts in exchange for lighter tax penalties and no recommendation for criminal prosecution. Taxpayers must still pay taxes owed, interest and 20% of the value of the account at its highest value -- but by doing so, they avoid facing up to five years in prison and 50% of the value of the account for every year they failed to disclose the account.

Tax evasion criminal defense lawyers in Miami and around the world report a flood of calls from taxpayers who want to take advantage of this program. In fact, Bloomberg said, attorneys reported hearing from many more clients after the settlement was announced. That’s on top of the already-record number of people taking advantage of the voluntary disclosure program. The IRS said it has about 500 people a week entering the program -- up from fewer than 100 in all of 2008. They may also feel a special urgency because the program is slated to end on Sept. 23 -- about a month. But according to one tax lawyer interviewed for the article, calls from clients increased substantially after the settlement was announced, perhaps suggesting that the 4,450 names pushed some fence-sitting taxpayers into action. Another attorney said anyone who doesn’t use the voluntary disclosure program is “taking a major gamble” that their name won’t be on that list.

Our West Palm Beach tax fraud criminal defense attorneys agree. Without knowing what criteria UBS will use to choose those names, taxpayers have no idea whether they will be investigated. As we’ve written before, UBS has admitted to actually advising its clients to break U.S. tax laws and helping them to do it, which suggests that even people with no bad intentions may have unwittingly committed tax crimes. If there is even a chance of being named as a tax evader, we believe it’s much better to step forth and pay the penalty than to face the possibility of prison. Previous news reports said the IRS has been lenient with taxpayers who never intended to hide their income, but made an honest mistake. By contrast, the agency is not kind to acknowledged tax evaders. In fact, a former UBS employee who cooperated with the IRS recently was sentenced to 40 months (three years and four months) in prison.

Continue reading " Tax Evasion Defense Attorneys See Flood of U.S. Taxpayers After UBS Settlement Releases More Names " »

The federal government and Swiss bank UBS reached a long-awaited settlement last week, the Associated Press reported Aug. 15. The IRS sued UBS for withholding names of 52,000 American taxpayers who it believes are hiding assets in UBS accounts to avoid taxation. They reached a settlement in that contentious case Aug. 12. Details of the settlement have not yet been released, the article said -- but U.S. taxpayers who believe they may be charged with tax crimes as a result of the settlement are hurrying to come clean first.

These taxpayers are taking advantage of a voluntary disclosure program announced by the IRS in March. During the six months ending Sept. 23, taxpayers who have undeclared assets with UBS or another overseas bank may voluntarily disclose the existence of that money. They will have to pay back taxes and penalties, but in exchange for their honesty, they can avoid the more severe penalties and potential prison time they would face in a federal prosecution for tax evasion. As our Miami tax evasion criminal defense lawyers have written on this blog before, those penalties can be severe -- up to five years in prison and up to 50% of the value of undeclared assets for each year they failed to disclose those assets.

Even before a settlement had been reached, tax evasion defense attorneys in South Florida and elsewhere reported a sharp increase in the number of clients asking for help with a voluntary disclosure. The IRS won’t disclose the total number of applicants, but did say that the agency saw 400 applicants in just one week this July, up from a total of fewer than 100 applicants in all of 2008. One attorney interviewed for the piece said he didn’t think taxpayers had much of a choice, because the enforcement situation has been permanently changed. Another person in the article, a tax advisor, said his clients get far better outcomes when they display “good faith” to the IRS -- and that includes voluntarily coming forward before the agency can charge them with federal tax crimes.

Balliro, Galasso, Leskovich & Seltzer has an active practice helping UBS accountholders and others take advantage of this voluntary disclosure program. Taxpayers may represent themselves during this process, but there are substantial and important advantages to getting advice from an experienced attorney. Our West Palm Beach tax evasion criminal defense attorneys help clients determine their eligibility; advise them about what must be disclosed; and represent them at interviews with the IRS, which can be stressful as well as legally troublesome. And of course, we will negotiate aggressively on clients’ behalf to get them the best and fairest possible outcome -- one that takes into account their good-faith disclosures and extenuating circumstances.

Continue reading " UBS Settlement Spurs Americans to Disclose Tax Problems Before Possible Prosecution " »

An editorial in Aug. 9’s Sarasota Herald-Tribune called attention to an ongoing problem here in South Florida: the flood of foreclosed homes. As the article notes, major mortgage lenders were taken to task by the Obama Administration in late July for failing to take stronger action on loan modifications. Of the estimated 2.7 million Americans eligible for loan modifications under the Making Home Affordable program, an estimated 9% have actually received loan modifications, the article says. Meanwhile, there have been 1.5 million foreclosures around the nation so far this year, and Florida is one of the hardest-hit, with 10 of the top 25 most-foreclosed metropolitan areas. The editorial called on lenders to do more to meet the administration’s goal of 500,000 loan modifications by November 1 of this year.

At Balliro, Galasso, Leskovich & Seltzer, we serve clients throughout South Florida -- so we see the bad results of these foreclosures in our communities. In response, we are proud to announce that we will offer legal foreclosure defense services to homeowners throughout the state of Florida. Our Sarasota foreclosure defense attorneys represent homeowners who are at risk of foreclosure or actually facing foreclosure proceedings. Depending on the circumstances, we may be able to get a legal order stopping the foreclosure right away, giving our clients the chance to negotiate a workable loan modification, get back on their feet financially or, in some cases, invalidate a loan made under illegal circumstances.

Hiring a Fort Myers foreclosure defense lawyer may sound strange to some people. After all, borrowers are free to work out loan modifications on their own. However, months of news reports have made it clear that lenders and mortgage servicers do not seem to want to grant loan modifications. In fact, a study released in July by the Boston branch of the Federal Reserve concluded that lenders intentionally avoid making loan modifications because they lose money making those changes. As one author, Boston Fed economist Paul Willen, observed, banks would go out and hire more staff to deal with the overwhelming demand for loan modifications if making the modifications were profitable. Because banks have not hired this staff, borrowers seeking a loan modification face months of delays, lost paperwork and bureaucratic mistakes even as their lenders continue the process of foreclosing on their homes.

Even if you’re facing this kind of red tape, BGL&S can help. Our Naples foreclosure defense attorneys get the banks’ attention very quickly by filing lawsuits in cases where that action is appropriate. A lawsuit can result in a legal order to stop foreclosure right away, long before the case is resolved. In many cases, homeowners who are facing foreclosure are people who took out subprime or exotic loans -- a market that multiple suits now allege was rife with unethical behavior. If you were lied to or misled when you took out your loan, you are probably a victim of predatory lending. BGL&S aggressively pursues predatory lending lawsuits because they can invalidate the loan, allowing borrowers to negotiate for a more favorable loan modification.

Continue reading " In Response to Flood of South Florida Foreclosures, Law Firm Offers Foreclosure Defense Services " »

In a last-minute deal that stopped hearings set to begin today, the Internal Revenue Service and Swiss bank UBS have reached an agreement, Bloomberg News reported July 31. The agreement may end a lawsuit the IRS filed against UBS to compel it to reveal names of 52,000 Americans with accounts there. No details were provided, but the settlement will be submitted in writing this Friday, August 7, and our Miami-Dade tax evasion defense attorneys will be watching closely.

The government sued to identify Americans who have been avoiding taxes by hiding assets in UBS accounts, something UBS has already admitted to helping facilitate. The lawsuit was filed shortly after UBS deferred prosecution for helping Americans evade their taxes, paying $780 million and revealing 250 names. The IRS wants 52,000 more names, which UBS and the Swiss government contend would violate Swiss law. The lawsuit seeks to establish whether the UBS deferred-prosecution agreement compels it to hand over the larger list of names. Secretary of State Hillary Clinton is meeting today with the Swiss Foreign Minister, Micheline Calmy-Rey, to discuss the situation.

Since UBS identified the original 250 names, at least three American UBS clients have been prosecuted for tax evasion. In anticipation of learning the names of thousands more, the IRS is offering a voluntary amnesty program for all U.S. taxpayers who have overseas assets they have not declared on their taxes, including assets at banks other than UBS. Under the amnesty program, taxpayers come forward to reveal their assets -- frequently with the help of a West Palm Beach tax evasion defense lawyer -- in exchange for lighter penalties. Participating taxpayers must still pay back taxes and penalties, but they face much smaller fines and no possibility of prison time. By contrast, if they fail to come forward, these people face up to five years in prison and a fine of $100,000 or 50% of the account’s value -- for each year they failed to declare assets.

According to another article by Bloomberg, taxpayers are rushing to take advantage of this program before its Sept. 23 deadline. The IRS said it received 400 voluntary disclosure applications in one week in July, which is four times the number of voluntary disclosures in all of 2008. To make the process more efficient, it has released a list of information it would like from disclosing taxpayers, including account numbers and information on any audits. As we noted last week, they are also summoning many taxpayers for in-person interviews that may be an attempt to find out who is advertising these accounts.

Taxpayers may have a Naples tax evasion criminal defense attorney represent them throughout this process, and Balliro, Galasso, Leskovich & Seltzer recommends it highly. BGL&S represents taxpayers throughout Florida who are ready to make these voluntary disclosures and avoid serious penalties. We can help taxpayers establish eligibility and meet the basic requirements; represent them during any difficult in-person interview or audit; and make sure their rights are respected during the process. As the Bloomberg article notes, penalties are generally lower for families of Jewish people who fled the Holocaust; they should also be lower for those who genuinely thought they didn’t have to report their assets. Our Fort Lauderdale tax evasion criminal defense lawyers will ensure that the IRS understands and respects circumstances like these.

Continue reading " UBS Reaches Deal in Tax Evasion Lawsuit to Reveal Names of American Accountholders to IRS " »