Federal Defense Attorney John Teakell

There is little doubt that the economy has been a hot topic recently in many households across America. This matter has also spewed over into the federal judicial system as one notable defendant, Robert Graham, is experiencing the brunt of frustration for the economic meltdown while federal prosecutors seek to have him sent to federal prison for over 230 years.

AIG Scandal results in Conviction of Graham
The name American International Group, Inc (AIG) has become synonymous with the economic crisis and the lengthy sentence Graham now faces is a result of a conviction federal prosecutors obtained for his role in an insurance scandal to defraud investors of AIG. According to trial testimony, Graham, who was the former senior council of the insurance firm General Reinsurance, assisted in the deal with AIG, which ultimately led to the indictment and conviction of five additional defendants.

At the root of the scandal, federal prosecutors allege that General Reinsurance paid AIG a $10 million insurance policy and that this money was later secretly returned. AIG then booked over $500 million in false loss reserves in an attempt to impress Wall Street analysts and to increase its stock price. Prosecutors allege that Graham offered advice which helped to “legitimize bogus documents and to conceal the fraud” thus abusing his position with General Reinsurance.

Did Graham’s Criminal Conduct contribute to the Seven Hundred Billion Dollar Bailout or is he just another Scapegoat? As a result of the financial crisis, United States taxpayers have had to bail out AIG with over $122 billion in loans while AIG company executives are now being questioned in congressional hearings. Federal prosecutors argue that the Graham and the other defendants deserve heavy sentences because their criminal conduct contributed to the financial ruin of AIG, thus requiring the bailout to avoid a complete collapse. Graham’s Attorney, Alan Vinegrad, argued to the jury that prosecutors are overstating the seriousness of his client’s misconduct. According to Vinegard, Graham didn’t initiate the scheme, did not have any control over the amount of loss, nor did he personally benefit from it. Jurors did not agree with Vinegard’s assessment, however, and convicted Graham on all counts.

Graham’s sentencing was initially held on September 25, 2008, but was rescheduled at the request of defense attorneys after the government’s recommendation of the 230 year sentence. The court has yet to reschedule sentencing in this matter.

With President George W. Bush’s term coming to an end in only a few months, one question that has been asked is if Bush will grant any presidential pardons on his way out the door. Many suggest that Bush has seemingly been unaware that the power to pardon exists citing the fact that he has become nothing more than a rubber stamp for declining the petitions.

Bush has already denied more pardon and clemency petitions than any president in history. During his tenure in office, he has rejected 5,966 requests, nearly twice as many as Bill Clinton did in eight years, five times more than his father did in four years, and almost five times as many as Ronald Reagan did in eight years. Furthermore, according to the United States Pardon Attorney’s official reports, there is an enormous backlog of clemency petitions, a total of 2,501 requests “pending” as of January 2008.

To Pardon or not to Pardon
Generously granting pardons has certainly not been a problem of George W. Bush either. During his first seven years of office, he has granted only 142 pardons, four commutations and one remission. This equates to more than 40 requests denied for every one granted. In comparison, President Clinton granted one in every seven requests.

Big Names Asking for Relief
Among some of the more notable convicts that are currently asking Bush for a pardon include John Walker Lindh, the American linked to the Taliban. Other petitioners include Randy Cunningham, the former Republican congressman of California; Edwin Edwards, the former Democratic governor of Louisiana; and Marion Jones, the former disgraced Olympic sprinter. Bush has until the day before he leaves office in January 2009 to decide these pending petitions.

Outspoken Critics
Former United States pardon attorney Margaret Love expressed her displeasure with the Bush Administration’s lack of organizational effort in reducing the amount of pending petitions. “My experience is that anybody who gets their name in the paper before the President acts is unlikely to be pardoned,” said Love. “It tends to be discouraging.”

Despite his dad’s nickname the “Teflon Don” it appears that son John A. “Junior” Gotti’s recent fate has not been quite as fortunate. Gotti Jr., who previously served a 77-month sentence for racketeering crimes, including bribery, extortion, gambling and fraud, was released in 2005 – only to be named in another racketeering indictment issued by a federal grand jury on August 5, 2008.

The indictment alleges that Gotti Jr. was involved in a large-scale cocaine trafficking operation in violation federal statute 21 U.S.C. § 841 and there murders of in the late 1980s and early 1990s in violation of 18 U.S.C. 1111. In addition to the aforementioned offenses, the twenty one page indictment also charges Gotti Jr. with criminal involvement associated to the Gambino crime family which operated in Florida, New York, New Jersey and Pennsylvania as well as a laundry list of crimes including obstruction of justice, kidnapping, witness tampering and money laundering.

Defense Attorneys Claim the Charges are a Joke

With the recent indictment, it makes it actually the fourth time federal prosecutors have tried to convict the one-time reputed head of New York’s Gambino crime family. Three previous attempts in 2005 and 2006 to send Gotti back to jail on more serious charges resulted in hung juries and mistrials.

Gotti’s lawyer, Charles Carnesi is not so enthusiastic of his client’s new charges. “Mr. Gotti absolutely denies any involvement in the three homicides,” said Carnesi. “What you have here is a group of law enforcement people who are disgruntled and willing to do what it is takes to convict Mr. Gotti. This is a 44-year-old, who has been dealing with this prosecution for the last 10 years without incident,” Carnesi said.

Federal prosecutors feel otherwise. United States Attorney Elie Honig stated that the latest indictment “captures a lifetime of crime by John Gotti that has been developing over two decades.”

Both Sides are certain to Clash at Trial

Gotti Jr. was denied bond and will be detained pending trial which is scheduled to later this year. At Gotti’s arraignment, Carpesi said he would file for a change of venue, to get the trial moved to New York, insisting that federal prosecutors filed the charges in Tampa in hopes of finding a jury less “star struck” by the Gotti name.