White-Collar Scam Alert!!
Every time I think I’ve heard of every white-collar scheme there is, another one comes across my desk. Before reading further, please be aware that most families of white-collar offenders (especially those who are estranged from the perp) have as much knowledge about the mysterious ways of the prison system as anyone else.
A few days ago a member of my white-collar wives support group reached out to me in a panic after receiving a call from an official from the United States Parole Commission who was reaching out to inform her that her ex-husband was being released in ten days time. The parole officer said that the prison needed to make arrangements for her husband’s placement. Sarah (not her real name) told the caller that she was no longer married to the prisoner and had no desire to take responsibility for him. She did offer to check in with other family members who may be willing to participate in his release. Sarah not only does not want her ex-husband back in her life, but it would not be physically feasible to take him in because the family’s former home has been in foreclosure for sometime, and Sarah and her daughter are currently living with and caring for Sarah’s elderly and ailing mother. The sad truth is that when a head of household betrays their family in such an egregious manner, and is sent to prison for a very long time for their criminal actions, many families are forced to move on and find a way to rebuild their lives to simply survive.
Sarah reached out to me because her ex-husband’s impending release triggered many hurtful emotions for her, and she was also fearful of the risks involved with her 28 year old daughter who immediately stepped up to the plate to take her father in. The daughter was not only willing to take custody of her dad, but was elated that he was being released early. The news of his release was, as it is for many children of incarcerated parents, a dream come true. Sarah’s concern (and mine as well) is that her daughter is only 28 years old and not yet financially stable. Not only would the daughter need to scrape funds together to move herself and her dad into an apartment, but both she and her father would require a co-signer for a rental. Out of the gate, the plan was altruistic, but the perp’s sister agreed to co-sign for the apartment, and also contribute funds to this endeavor.
Delving further into the logistical aspects of this sudden release, Sarah and I were both perplexed not only about the fact that her ex had only spent three years in prison on a 14 year sentence, but that the “probation officer” said that the release was due to Covid. This knowledge triggered further concern. Neither I nor Sarah know much about the BOP, but we know enough to question the early release of someone being placed on parole after only three years on such a long sentence. Also, Sarah’s ex is only 63 years old and in relatively good health, and at this point, Covid is relatively contained and not nearly as deadly as it was a couple of years ago. But this thing was in motion and out of our hands so I asked Sarah to lean on the group as needed (the members of our group are amazing!) and to keep me posted on how this all unfolds in the coming weeks.
After Sarah’s call, I thought about how disturbing and disorienting sudden release is for the family, as well as the perp, and how harrowing it is both emotionally and logistically to put a release plan in place in a short span of time. But the thing that disturbed me the most was Sarah’s daughter’s elation in having her dad home because like so many dealing with the parole and re-entry of a family member, they look no further than the homecoming and do not consider that the joy of a loved one coming home from prison soon gives way to the harsh realities of a parolee’s limitations. (Read my blog about the realities of post prison life for white-collar criminals here The Grim Truth About Post Incarceration.) Add to the mix that at age 28, Sarah’s daughter was just beginning to recover after ten years of trauma. She had had to endure the fallout from her father’s crime which was widespread, her parent’s divorce, and her father’s incarceration. It was not until recently that she was able to pursue her future on more stable footing.
That evening after speaking with Sarah, as I often do, I perused LinkedIn to see what my “circle” was up to. Serendipity came into play when the first post I saw was Walt Pavlo’s update on his work as a staunch advocate for The First Step Act. Walt wrote, “Federal Bureau of Prisons is still having issues fully implementing the First Step Act. While it has made monumental strides since the full program was defined in January 2022, many inmates are staying in prison for longer periods than necessary.” I posted a comment on the thread about Sarah’s husband’s sudden release and that it didn’t seem fair for him, of all people, to be released while others who are more deserving are still waiting. An attorney on the thread immediately replied to me and wrote, “There is no lawful mechanism that would explain someone's release from a 14-year federal sentence after 3 years, Lisa. Did the wife mention where she got this information? It could well be a scam. Someone calls the inmate's family with news of a last-minute early release plan, hurry up and make the plan claiming to be from US Probation, or even from "the parole commission. Oh, and by the way, you have to send money immediately (via Zelle, or Venmo, or CashApp) to cover the cost of electronic monitoring. Family sends money; that's the last anyone ever hears of the bogus release plan." The attorney’s post validated mine and Sarah’s feeling that something wasn’t right about this prisoner’s early release, and I immediately called Sarah back and asked if her daughter had wired any money to the “probation officer” and Sarah told me, “She wired $900.00 to the guy a week ago. He said there was a charge for monitoring parolees. Why are you asking?” My heart sank to it’s deepest depth as I explained that this was a scam. Sarah and I sat in silence over the phone for what seemed like minutes. While she was on the line with me, I googled the United States Parole Commission and the first thing that popped up was notification of this very scam. I told Sarah to contact her local FBI agency, report the scam to the FTC, and to contact Vemo and her bank. Sarah’s daughter will likely never see that cash again, and the perp who scammed her will likely never be found. All we can do is make others aware of this scam so that they can recognize it if it happens to them.
While all white-collar crime schemes have victims, there are no more vulnerable victims of these crimes than the family members of those who perform them. Through no fault of their own, families become injured parties in that they are plunged into economic, legal, emotional, and social peril, and are rightly considered “collateral damage” by the courts. In military terms, collateral damage is the polite term used to describe innocent people that are killed. Lest there be any doubt, white-collar crime routinely triggers the death of the family as these egregious acts are an acute betrayal of familial trust and trigger ruinous consequences for family members in every way possible. Ask any white-collar ex-con and most will confirm this fact. Not only has Sarah’s daughter been scammed out of cash she barely had to free her dad, but also must suffer the loss of losing her father to prison all over again. I fear this egregious fraud induced setback will affect her mental health and general mistrust of society that she has fought hard to regain. It may sound harsh to some, but my hope is that Sarah’s daughter dodged a bullet in taking her father in and placing her young life on hold for his sake, and that after recovering from yet another harsh blow that has shaken her to her core, can now move forward and reach her full potential without this particular burden.
White-collar crimes are acts of pure selfishness and are deadly for perps and their family members. This is why The White-Collar Wives Project webinars series A New Perspective on Deterrence is vital for corporations and business associations because making compliance personal is the key to prevention. This series will soon be available in e-book form as it is the most effective anti-fraud tool on the market. Those who are serious about compliance and occupational crime prevention know that the best training comes from the most knowledgeable experts. If you or your organization are interested in being placed on a pre-order list for the e-book, please contact me at lawlerlisa1@gmail.com. The White-Collar Wives Project webinar series has received rave reviews and we hope to continue to grow our network of savvy corporate partners in our mutual quest to prevent white-collar and corporate crime. Fraud is all around us and gaining more speed with every passing day. It is destroying highly esteemed employees and their family members, and it is a real threat to businesses large and small. As the saying goes, if you’re not part of the solution, you are part of the problem.
The White-Collar Wives Project has been featured in the New York Times, The American Bar Association Journal, Forbes, Market Watch, Bravo/Oxygen, the ACFE, and numerous esteemed national podcasts
