Business dealings can often get very complicated, and sometimes it is necessary to shift funds around in legal but unorthodox ways, especially if the company is relatively new. Zealous criminal investigators, alerted by suspicious insiders, may see transfers of money from one account to another as suspicious. This may lead to accusations of white collar crimes. Because such accusations and the events that often follow can cause great personal and professional damage to those involved, those who face charges of money laundering would do well to seek legal counsel.
One California businessman is under indictment for allegedly skimming money from his medical device company and using it for his own benefit. The president and CEO of the company allegedly withdrew $500,000 from his retirement account to use for vacations, visits to spas, jewelry purchases and other personal expenses. He then is reported to have requested reimbursement from the company's board of directors, claiming he used the money for company business.
Additionally, authorities have accused the man of charging the medical device company consulting fees from another company he owned. However, investigators say the other company is not a consulting firm and did no work for the medical device company. There are also allegations that the CEO created a bogus company to accept payments from both the medical device company and the consulting company so he could buy a home worth over $2.5 million.
The California CEO says there is a logical explanation for the movement of the money. If the investigators had approached him earlier, he says he could easily have explained the unorthodox accounting. Instead, he faces charges for white collar crimes that could result in 30 years in a federal prison if he is convicted. For those in similar situations, it is wise not to face such charges without a strong legal ally.