Saturday, December 11, 2004

Frankel Sentenced

White Collar cases often mover slower than cases involving street crime, but the case of Martin Frankel moved unusually slow.  But there is a reason why...

According to an AP story in the Wall Street Journal, Martin Frankel was sentenced  yesterday to 16 years imprisonment after pleading guilty to 24 charges of fraud and racketeering. Frankel had been accused of participating in "a scheme to bilk seven insurance companies out of more than $200 million."  Reuters reports that "Frankel could have faced up to 150 years in prison and some $6.5 million in fines, but federal prosecutors sought a lesser sentence in exchange for his pledge to cooperate with attempts to recover the money he stole. Authorities have so far recovered at least $60 million, federal prosecutors said." And last week the IRS sold diamonds belonging to Frankel, that Reuters said "reportedly fetched around $9 million."

Frankel was extradited to the US from Germany to face these charges.  The Toledo Blade has a wonderful listing of articles from 2000-2001 that tells the story  of Frankel, his becoming a fugitive, and his extradition back to the United States.

Frankel's remorse at sentencing did not play well with the judge.  As noted by Reuters  U.S. Attorney Kevin O'Connor said that while Frankel showed remorse, he was "15 years and $200 million too late."

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2004/12/frankel_sentenc.html

Fraud, News, Sentencing | Permalink