Feds Aggressively Pursue Violators of White Collar Crime Law
Strategies that were once reserved to gather evidence on drug rings are now being employed to expose those individuals and organizations committing fraud and hiding assets. According to a recent Forbes article, recent federal agency cases have used wiretaps, informants and even undercover sting operations to provide evidence on key individuals. A case that targeted Steven Zinnel in the Eastern District of California shows the extent that federal agents are willing to go in order to build a case against those breaking white collar crime laws.
It Begins with Bankruptcy and Divorce
Federal authorities were given information from a third party that Steven Zinnel, an entrepreneur, had failed to provide information on all of his assets during a 2008 bankruptcy filing. Their theory was that Derian Eidson, both his girlfriend and an attorney in Orange Country California, had aided him in hiding his assets. She began a romantic relationship in 2001 after his divorce and represented his interests in various business concerns.
The Trap Was Set
System 3’s sole owner, Tom Wilbert, cooperated with the Feds and arranged a one-time payout for Zinnel. In 2008, Wilbert offered Zinnel $4 million to server all ties. Zinnel accepted. Eidson was involved in that her assistance was requested in putting together the final agreement in Sacramento. In unusual undercover tactics, the parties representing System 3 during that meeting were also assisting the federal government.
The Indictment Conclusion
In June 2011, a federal indictment determined that that Zinnel was not forthcoming about all of his assets, including his stake in a company called System 3. In October of 2001, Zinnel invested $170,000 into System 3. His name appeared on none of the documentation and only in 2007, 2 years after his bankruptcy, did he, via a company called Done Deal that was owned by Eidson and employed Zinnel, begin receiving monthly “consulting fees” from System 3.
Both Eidson and Zinnel refused a plea deal and went to trial. Eidson was sentenced to 121 months and Zinnel to 18 years.
A California Criminal Defense Lawyer Can Help
Non-violent offenders face stiffer sentences and unusual tactics. The law offices of Lawrence Wolf have been practicing criminal law for more than 40 years. A complimentary consultation with a California criminal defense lawyer at the Law Offices of Lawrence Wolf can help individuals determine next steps. Contact us today at (310) 277-1707.
