Web Unravels Around Lawyer Held in Fraud

Limits 'honest services' prosecutions for white collar crimes

(AP) - The Supreme Court ruled today that prosecutors erred in using a federal fraud law to convict former Enron chief executive Jeffrey Skilling, but left it to a lower court to determine whether his conviction should be overturned. The justices were unanimous in imposing limits on the use of the federal "honest services" fraud law that has been a favorite of white-collar crime prosecutors. In a related opinion, they also ordered a new a hearing for former newspaper magnate Conrad Black. More»

(NEWSER) - Bernie Madoff has reached his destination for the next 150 years or so. Clad in a blue jumpsuit, the fraudulent financier arrived at Butner Federal Correctional Complex in North Carolina just before noon today, ABC News reports. But the 71-year-old can take heart, because he “hit the inmate lottery,” by being assigned to Butner, according to one federal sentencing attorney. More»

He denies being modern Norman Bates

(NEWSER) - Shades of Norman Bates in Psycho: A Brooklyn man accused of dressing up as his dead mom to collect Social Security checks and rent subsidies worth $115,000 has been indicted on 47 counts of grand larceny, forgery, and conspiracy, the New York Daily News reports. Thomas Prusik-Parkin, 49, and his accomplice, who posed as the frail woman's nephew, face 25 years in prison and have pleaded not guilty. More»

'Autographed' first editions brought big bucks in eBay fraud

(NEWSER) - A man who made more than $300,000 by selling "autographed" first editions of books that actually contained forged signatures pleaded guilty to fraud in a Philadelphia court today. Forrest Smith's offerings on eBay included books by Truman Capote, Norman Mailer, Anne Rice, Tom Wolfe, and Tom Clancy, the Los Angeles Times reports. The forgeries were excellent—Smith produced them using rubber stamps he had made from the authors' signatures on other items, the Philadelphia Inquirer adds. More»

Dreier bilked clients, spent cash on yacht and beach houses

(NEWSER) - New York lawyer Marc Dreier pleaded guilty yesterday to selling hundreds of millions in bogus promissory notes to hedge funds and other clients, reports the Times. Dreier, 59, used the $400 million to fund a Manhattan apartment, beachfront houses, and an $18 million yacht. “He has disgraced the honorable profession of law,” said the judge after he entered his plea. More»