white-collar support group
John Dimenna is a member of our White Collar Support Group that meets on Zoom on Monday evenings.
A former real estate developer, John Dimenna was sentenced to eighty-five months in prison for two counts of wire fraud in 2016, at the age of 76. Fortunately, he received a reprieve after eighteen months due to the COVID-19 pandemic, and was re=sentenced to serve three years of home incarceration until May 2023. He currently reside in Vero Beach, Florida, with hisy wife of fifty years and writes full time. John Can be reached at [email protected].
YouTube Video Panel: Prosecuted Lawyers’ Perspectives on White Collar/Nonviolent Prosecution and Reentry, ABA Criminal Justice Conference, Washington, DC., Nov. 18, 2022
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Seth Williams, Bill Baroni, Jeffrey Wertkin and Jeff Grant are members of our White Collar Support Group that meets on Zoom on Monday evenings. Michele Weinstat was a presenter on our White Collar Week Tuesday Speaker Series.
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We were Panelists at the American Bar Association Criminal Justice Section Fall Institute Conference:
Nov. 17th & 18th, 2022, Washington, DC
Panel: Fri., Nov. 18th
“Prosecuted Lawyers’ Perspectives on White Collar/Nonviolent Prosecution and Reentry”
Details: Lawyers convicted and incarcerated for white collar or nonviolent crimes will share their stories, experiences and difficulties during prosecution and reentering society after prison, and will make recommendations as to how the white collar bar and criminal justice system can be more effective, humane and merciful towards white collar defendants (and their families) while better fulfilling their obligation to enhance rehabilitation through diversion and other alternatives to incarceration. Please join us if you will be in the DC area!
Moderator: Jeffrey D. Grant, Esq.
Panelists: R. Seth Williams, Bill Baroni, Esq., Michele Weinstat, Esq., Jeffrey Wertkin
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White Collar Support Group Blog – Tom Gage, Writing for Interrogating Justice
Tom Gage is a member of our White Collar Support Group that meets on Zoom on Monday evenings. He is a gifted writer, as his articles for Interrogating Justice show (links below). Enjoy! – Jeff Grant
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Tom Gage is a freelance writer, editor, proofreader and tee-shirt designer. He holds a B.A. Degree in English and a Juris Doctorate from the University of New Hampshire. Tom served as a Representative in the New Hampshire General Court (Legislature) from 1980-90 representing the towns of Exeter and Newfields. He was an attorney-at-law and real estate developer in the Seacoast of New Hampshire for nearly thirty years. In 2018, Tom was prosecuted for a financial crime arising from a botched refinance of his family home. Convicted under a statute he helped to write, Tom served 20 months in the New Hampshire state prison system. He was paroled to Stamford, Connecticut in 2020. When he is not writing, editing or designing, Tom works on the I-130 immigration petitions for his wife and stepson, volunteers with a local organization which resettles Afghan immigrants and watches TV game shows.
Huge thanks to our friends at Interrogating Justice for permission to reprint and link.
Who’s Guarding The House? A Bizarre Prison Guard Story, by Tom Gage:
“There’s a bizarre story out of Alabama that has flashed across the news in the last few days. Capital murder suspect Casey Cole White and the prison guard who was transporting him to a court-ordered mental health appointment at the Lauderdale County courthouse vanished. The officer was not just any prison guard. She is Vicky White (no relation), the Assistant Director of Corrections in the Lauderdale County Sheriff’s Department, and was in her last day on the job…”
Read the full article: https://interrogatingjustice.org/government-accountability/whos-guarding-the-house-a-bizarre-prison-guard-story/
Does The SHU Fit? A Note About Solitary Confinement, by Tom Gage
“Aside from the death penalty, there is likely no more contentious issue in the area of prison reform than the abolition or remaking of solitary confinement. The term itself feels so odious that most jurisdictions have replaced it. They use terms such “punitive segregation,” “administrative segregation,” “isolation,” “secure housing” or “special housing” instead. Today, the debate about solitary confinement, its use and its detriments lies at the heart of any discussion about incarceration itself…”
Read the full article: https://interrogatingjustice.org/prisons/%ef%bf%bcdoes-the-shu-fit-a-note-about-solitary-confinement/
So, Why Do We Call A Penitentiary A Penitentiary? by Tom Gage
“A couple of years ago, I was “housed” at the Northern New Hampshire Correctional Facility in Berlin, New Hampshire (also known as the Berlin State Prison and “Berleasy”). While there, I had a “homework” assignment for my counseling group: to talk about how prison was improving me…”
Read the full article: https://interrogatingjustice.org/ending-mass-incarceration/so-why-do-we-call-a-penitentiary-a-penitentiary
It’s Not The Ritz: Attitudes About Prison Conditions In America, by Tom Gage
“On May 17, a judge remanded Young Thug, a rap artist from Georgia, whose legal name is Jeffrey Williams, to pretrial custody after a court hearing in Atlanta, Georgia. Allegedly, the artist co-founded the “Young Slime Life” gang, which has allegedly been responsible for numerous crimes, including possibly 50 or so murders, in the area. The judge found him to be flight risk and placed him in pretrial detention while he considered the bond he will order…”
Read the full article: https://interrogatingjustice.org/fairness-in-sentencing/its-not-the-ritz-attitudes-about-prison-conditions-in-american/
White Collar Week Tuesday Speaker Series – Tom Hardin, Tipper X of Operation Perfect Hedge, On Zoom, Sept. 13, 2022, 7 pm ET, 4 pm PT.
We are honored to have Tom Hardin, Tipper X, as the next speaker in our White Collar Support Group Tuesday Speaker Series. Link to register: https://zoom.us/meeting/register/tJIucuCgpjgvEtADpghkufC7pGU8DArAxoHS
Tom is a member of our White Collar Support Group that meets on Zoom on Monday evenings.
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Tom Hardin previously spent much of his career as a financial analyst in the U.S. In 2008, as part of a cooperation agreement with the U.S. Department of Justice, Tom assisted the U.S. government in understanding how insider trading occurred in the financial services industry.
Known as “Tipper X,” Tom became one of the most prolific informants in securities fraud history, helping to build over 20 of the 80+ individual criminal cases in “Operation Perfect Hedge,” a Wall Street house cleaning campaign that morphed into the largest insider trading investigation of a generation. As the youngest professional implicated in the sting, Tom was tasked with wearing a covert body wire on over 40 occasions to help the FBI bring down some of its biggest targets in the industry.
In a reunion of sorts, Tom was invited by the FBI-NYC’s office to speak to their rookie agents in 2016 and is now a global keynote speaker, corporate trainer and board advisor on behavioral ethics, compliance and organizational conduct and culture risk. Through rigorous self-examination, Tom took responsibility for his actions as a young professional, used the experience to transform his life and is now on an on-going journey into human behavior and why we sometimes make the wrong decision.
Tom holds a B.S. in Economics from the Wharton School at the University of Pennsylvania. Tom’s riveting life story is the subject of his forthcoming book, The Inside Story of Tipper X.
Tom Hardin on The James Altucher Podcast, July 14, 2022:
Craig Stanland and Jeff Grant have Press Credentials and will be Covering the Association of Certified Fraud Examiners (ACFE) Global Fraud Conference, Nashville, Tenn., June 19 – 24, 2022
Craig Stanland and I have press credentials, and will be covering the Association of Certified Fraud Examiners Global Fraud Conference, Nashville, Tennessee, June 19 -24 (virtually this year) for White Collar Week Media. Please look for articles on our websites and blogs, prisonist.org, grantlaw.com, and in our newsletters and podcasts. – Jeff
https://www.fraudconference.com/
Join more than 5,000 anti-fraud professionals gathering in Nashville and online. Now in its 33rd year, the ACFE Global Fraud Conference is the world’s largest conference for fraud fighters looking to go beyond all limits.
Release Day: June 5, 2007. My Last Day in a Federal Prison, by Jeff Grant. An Excerpt from My Unpublished Book, “Last Stop Babylon”.
June 5, 2007. Release Day. I am humbled and grateful to God, and to my family, friends, fellows, Fellow Travelers, colleagues and clients – and my wonderful wife Lynn – for the second chance I have been given over the past 15 years. – Jeff Grant
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As I’m sure I’ve said once or twice already, the hardest parts of a prison bid are at the beginning and at the end. My bid is finally at its end.
My case had been situated in the Southern District of New York; I appeared and was sentenced on Pearl Street in Manhattan. But even before I was arrested, my family had moved to Connecticut, where we lived for over four years now. Complicating things further was the fact that my wife and I were separated, so I really had no home in either Connecticut or New York. Without a home, I would not be eligible for early release for good behavior (three and a half months) nor would I be eligible to go to a halfway house (five weeks). The math was simple: if I didn’t find a home soon, then I would have to stay in prison the entire eighteen-month term of my sentence.
I started making calls. My best shot was with my best friend Peter. Peter had been in A.A. with me since the beginning, was like an uncle to my kids; I was like an uncle to his daughter Jamie. Peter had my power of attorney; certainly he’d let me stay with him for six or eight months. That would be long enough to satisfy probation that I was being released to someone, and somewhere, secure. After Peter had split up with his wife a few years prior, I had furnished his new apartment with the basement furniture from our old place in Rye. So in essence I was be asking him if I could move in to be reunited with my old stuff. That evening, after waiting the usual one-hour for one of the four phones outside the guard’s office in the unit, I actually got Peter on the phone. Even though Peter was a Harvard graduate, I still had to meticulously walk him through the steps of why I wanted and needed him to put me up for the next year or so. He had a three-bedroom apartment, he had an extra bedroom, and I would pay rent. I expected him to wrap his arms around me and welcome me home. Well, of course that didn’t happen. Instead, he told me that he’d get back to me.
Peter made me wait almost three excruciating months for his reply; months where I could have, and should have, pursued other options. In the end, he turned me down; he told me it wasn’t convenient because his girlfriend sometimes liked to come over and play scrabble with him in the evenings. It was never really made clear to me this was really an excuse for some other reason he didn’t want to discuss. But I did learn a huge lesson. There was no way I could ever again expect the type of treatment I received when I was a big shot lawyer.
I suppose I can’t really blame Peter. He took things very hard. We met in our AA home group in Greenwich. He had six months more time than I did, but we were always traveling different paths. He was Italian, and had spent most of his entire adult life living and working in the Far East. Like the rest of us, he suffered big losses for his drinking and drugging. But he just couldn’t accept any of it; after all, he was a Harvard man, the one who was supposed to have it, and do it, all. But there I was giving him advice for almost the entire four years before I went to prison. It should have been a case study in how you can’t change anybody. Three days before I left for Allenwood, I found Peter curled up in a fetal position in his bedroom. I’d been around a lot of guys who needed help by this point, and I knew that just another AA meeting wasn’t going to do it. I roused Peter sufficiently for us to call his psychiatrist, who had been giving him a steady supply of Klonopin to make it through the day. With his doctor’s instructions, I called my alma mater, Silver Hill Hospital, and arranged for Peter to check in. So three days before I self-surrendered to Federal prison, I drove Peter up to the beautiful rolling hills of New Canaan, Connecticut where we spent the day in admissions.
Now I was in a panic. I had only a few weeks remaining before I’d pass the point of no return and be denied good behavior time and halfway house. My friend Nina, who lived in New Canaan (coincidentally only a mile or two from Silver Hill), occasionally rented out her guestroom to alcoholics. But, as far as I knew, she only did so to women. Nina was lovely, older, lived alone, and I always thought she had kind of a crush on me. That was a big card to play. The most important thing was to get Nina onto my approved phone and visitors list so we could discuss things.
Before I could call anybody from the phones outside the guards’ office in the unit, I had to fill out and submit a contact list to my counselor. I was only allowed to have twenty names and phone numbers on the list at any time, but I could rotate names on and off the list as many times as I wanted. But there was no way to gauge how long it would take to get the names approved. So, I was always juggling, taking names off and putting others on so that I could speak to people I needed to call. Some names were permanent fixtures on my list, like my kids, my sister Andrea, Lynn, Peter, George (my AA sponsor) and Dr. Delvecchio (my psychiatrist). Having people on my contact list was one thing, getting access to a phone was another? Sometimes the line to make a single fifteen-minute call could be as long as two hours. Of course, there were always much shorter lines at the end of the month because everyone had used up their 300-minute monthly time allocations by then; this was not exactly a culture in which people were willing to delay gratification.
I called Nina and she was thrilled to hear from me. I practically could hear her gushing over the phone. I explained my situation to her and, unlike Peter she didn’t hesitate at all. I explained that a probation officer would come interview her and inspect her home. No problem, Nina was a pro that had been through plenty. She wanted to know if I needed to be picked up at prison. She was game for anything. I told her I’d be in touch. The problem now averted, I had to go put my paperwork through and apply for halfway house approval. There is only one Federal Bureau of Prisons approved halfway house in the State of Connecticut. It’s in the Westside ghetto of the city, near Asylum & Sigorney Streets (pronounced Sig-a-knee to Hartfordites), and it housed releasees from both the Federal and the Connecticut Department of Corrections systems. I was soon to find out that this was not a good thing. Nor would much be about my halfway house experience. But from my view right about then on the line to see my counselor, the halfway house was one step closer to home.
I called my sister Andrea to discuss some strategy for when I got out. Andrea was the only person, other than my kids, who stayed squarely on my side. But the ordeal of coming to visit me was too much for her too. She managed to visit me twice in those fourteen months, but she never really got comfortable with the entire situation. I explained to Andrea that I would be released on June 5th and then would spend up to eight weeks at Watkinson House in Hartford. If I got lucky, I could spend the last three weeks under home confinement at Nina’s place in New Canaan. I had no car, and wouldn’t be able to drive one while I was at the halfway house or under home confinement. But after that, a car would be very helpful since New Canaan is about fifteen miles from my kids, my friends and my AA home group that were all in Greenwich. She told me that she would work on it.
Days in prison are counted down to release, with the last day being your “wake up.” As the days grew closer to my release, I started my countdown in prison lingo: 30-and-a-wake-up, 29-and-a-wake-up. More and more of my “friends” left the compound for various reasons. Some were going off to have their own halfway house journey. Like my cellie, Les. He’d been locked up for eight years. In that time, his son had grown from two to ten years old. Les had only seen him twice. His ex-wife had been re-married to, and divorced from, a crystal meth dealer who beat her senseless while she was pregnant with his child. She’d given birth to the child, now about four, and was now pregnant with another. Les was considering going back to her once he reunited with his son who was now living outside Myrtle Beach. Others were Canadian citizens stuck in U.S. prisons on detainers, struggling to get the Canadian consulate to transfer them to the more lenient Canadian penal system. Hundreds others were undocumented or naturalized Latinos who were awaiting deportation proceedings. Allenwood was located in a region of about fifteen prisons served by a central immigration hearing office. Others got into fights and were escorted to the SHU, never to be heard from again.
Once Les left, I moved to his bunk and mine was filled by a crazy Russian kick-boxer who used to enforce for the mob. Or so he said, but I believed him. He had a very short fuse, and threatened me a few times in the last couple of months before I left prison. Thank God for Ricky, who seemed to know how to communicate with the guy? After I left, a corrupt accountant named Steve filled my bunk; he had no patience for the Russian at all. I guess the Russian had no patience for Steve either. One night the Russian had had enough of Steve, spun around and kicked him in the face, shattering his nose.
With about six days left (that’s 5-and-a-wake-up) things started to speed up. Tradition at Allenwood has it that the guy leaving throws a big dinner in the unit the night before he leaves. Any money left in an inmate’s commissary account is given to him by check as he is leaving the prison upon release. And, unless you are being transferred to another prison, it is an absolute sin if you leave with any prison clothing or gear whatsoever. It doesn’t matter what you paid for it, or how emotionally attached you became to any of it; you give away everything to your buddies before you leave. You go out the door with the clothes you are wearing, period. The guys on the inside need the stuff a lot more than anybody does after they leave; it’s kind of a code of honor thing. Of course, I saw more than once a guy give away all his stuff expecting to get released, only to have his discharge get held up for a few days. He had no clothes, sheets, blankets or towels. What a mess. But I was not one to buck tradition and I started to make arrangements to give away all of my prized possessions too.
There were big plans in the works for my going away party, and I’d been hoarding all sorts of stuff from the commissary to throw a big good bye for everyone. I had Spanish rice, assorted smoked fish in foil packets, packages of tortilla wraps, vegetable flakes, cookies, pretzels, potato chips. On 1-and-a-wake-up, I had about ten guys working the dining hall for all three meals, bringing back bags of smuggled food and vegetables, which we put on ice all day. I’d hired the best cookers in the unit. Immediately after dinner, I gave them all of the food that had been collected over the past few weeks, and smuggled all during the day. They brought it all back to their cubes and told us they would need ninety minutes. We spread the word that there would be a party at our cube at about 9:15, right after evening count.
Earlier that day, my name came up on the call out sheet with the code: “Mer-Go-Rnd”. It was the day I had to go around to each department on the compound and get them to sign-off that it was okay for me to be released, hence Merry-Go-Round. I received the check off list from my counselor in the unit, which was my first and last all-day, all-point compound pass in my stay at Allenwood. I returned to my unit with all the necessary signatures, and I was free to go. At 7:45, I went to my last pill line, and said good-bye to the staff and the nurse who gave me my medication every night. Back inside, I waited for count and prayed nothing would go wrong on my last night.
I had a lot of reason to think things could go wrong. Just the week before, I was standing by the phone waiting to make a call when two guys got into a fight. It was a particularly brutal fight, with blood flying everywhere. One of the guys lived in the next cube; his name was Flaco. Flaco may have been his nickname as there were a lot of Latino guys on the pound called Flaco (it means “skinny” in Spanish). The guards broke up the fight and took both Flaco and the other guy away to the SHU. SAS (prison FBI) came in, roped off the fight area, and investigated. When SAS was done, the blood spill team went to work. Inmates who need to make a lot of money and who presumably aren’t squeamish about infectious diseases man the blood spill team.
It turns out that a fight night was a very bad night to have a nosebleed. The air was very dry in these sealed units. So as I sometimes did, I had a little blood in my nose, wiped it on a tissue and threw it in the garbage of our cube. An hour later, the overhead lights came on with the speaker blasting,
“All feet on the floor, all feet on the floor.”
Five guards walked up and down the hallway screaming,
“Shirts off, hands out.”
They wanted to see if anybody else was involved in the Flaco fight. They got up to our cube and Les, Ricky and I were standing there, looking tired and innocent. That’s when one of the guards shined an ultraviolet flashlight into our garbage can and saw my bloody tissue. I think there were fewer alarms at Pearl Harbor than went off in the next minute or two.
There I was at midnight, about a week from my release, in a small office on the other side of the compound sitting across the table from two SIS officers who were looking pretty pissed off. They wanted to know exactly the “facts and circumstances” surrounding the bloody tissue in my garbage can. I answered every one of their questions to the best of my ability, which of course didn’t really matter a lick in that fun house. I told them that I had a bloody nose. They asked me if I could explain how I happened to get a bloody nose the same night as the fight. I told them that the air is dry every night. They asked me why would a fifty-year old man be in a fight with a couple of young Latinos? I told them that it was a hypothetical question, that I had a real bloody nose most nights. It went back and forth like this for a little while. Then they thanked me for my time and told me they’d be in touch.
It was a particularly balmy summer night as I walked back to my unit, and I stopped for a moment to gaze at the stars.
After count, guys started streaming into our cube for the going-away party. The cookers delivered over 100 fish and vegetable wraps. We had huge dishes of pretzels and potato chips, and over 50 chilled bottles of soda. Ricky surprised with a chocolate cheesecake he had commissioned by one of the unit bakers. It was excellent. Everybody in the unit was there: Bobby the disco king; the Canadians, Steve and Bill; Dennis, the new accountant who would soon get his face smashed by my new cellie the Russian arm breaker; Randy, the new Jewish kid who loved guns. We swapped stories and laughed, bonded by our situation. I knew that I had experienced something that most people would never see or understand. In a strange way I would miss this place. I gave out the last of my stuff and we all exchanged last good-byes. I snuggled off to my last night’s sleep in prison.
In a sea of nights in which I had laid endlessly awake, on this night I fell fast asleep.
Ricky walked me to the bench outside R&D at about 7:30 a.m., the same bench where I sat with Les only three months before. Les and I had about an hour of prison postscript before he had to leave. He gave me lots of notes on how I should handle myself while I was still on the compound and I told him what he could expect when he hit the street. So many things had changed in the eight years in the eight years Les had been behind bars. He had never seen an iPod or a Blackberry other than on television. Clinton was in the White House when he was arrested; now George Bush was soon to be on his way out. We talked about the twenty-two hour bus ride to his halfway house outside Myrtle Beach. This is where many ex-offenders are faced with their first tests: booze, drugs and women. Les had remained sober now for his entire prison bid. The only women he had seen up close in about six years were the female guards since he’d had no visitors. Les left without a whimper, just like all the others had. And now it was my turn. Ricky and I sat on that same bench talking, watching all the guys leaving their units heading for breakfast at the dining hall, morning pill line, and their early morning jobs, the same as they did every other day. But for me, this wasn’t any other day. We promised to stay in touch with each other, but in our hearts we both knew we wouldn’t.
The door to R&D swung open and the guard called out my name. Ricky and I gave each other a quick hug. I flung my little duffel over my shoulder, waved goodbye and stepped inside the door. I hadn’t been inside R&D since my first day at Allenwood and it looked nothing like I remembered it. That day seemed so long ago now, and such an ethereal part of my experience. There was now a little processing to do and some paperwork concerning my transfer to the halfway house. I had exactly five hours to drive to and check-in with Watkinson House in Hartford, Connecticut. They gave me a copy of my orders and a MapQuest printout. They also admonished me not to stop anywhere along the way because if I missed my check-in at the halfway house I would be sent back to prison for the balance of my sentence. I told them I understood. After about a half hour, two guards escorted out the front of R&D, out across the grassy courtyard that separated R&D and the visiting room from the front entrance of the prison. Once in the huge front entrance room, the one I had first entered with my friend Tom thirteen and a half months prior, the guards shook my hand, wished me good luck, and left. And that was that.
I walked out the front door of the prison alone, a little startled and not sure where my friends were. In order to be transferred to the halfway house, I had to submit for orders requesting specific people to transport me. I had asked Tom to drive me and he jumped at the chance. After all, he and his girlfriend Alexis had driven me up to prison, and both had visited me several times. He told me on the phone a few days before my release that he had a special surprise for waiting for me. I wasn’t sure if I could handle any more surprises, but I trusted Tom. I walked outside the doors and headed toward the parking lot, duffel over my shoulder wearing my last remaining prison uniform. On my feet was a brand new pair of Nike Air Force One’s that I had purchased at the commissary. There in the parking lot, standing next to Alexis’s Volvo station wagon, were Tom and Peter with the two biggest smiles I’d ever seen. Blasting on the stereo, with the windows rolled down, was Led Zeppelin’s Whole Lotta Love. The music grew louder as I walked towards the car.
Thirteen and a half months in prison and I finally got my boom box scene.
White Collar Week Tuesday Speaker Series – Craig Stanland, May 31, 2022, On Zoom, 7 pm ET, 6 pm CT, 5 pm MT, 4 pm PT
This is Your Invitation to Attend Our White Collar Week Tuesday Speaker Series
Please feel free to forward to friends, family members, colleagues and clients.
Craig Stanland
Author of Blank Canvas: How I Reinvented My Life After Prison
Tues., May 31, 2022, 7 pm ET, 6 pm CT, 5 pm MT, 4 pm PT
On Zoom
We are honored to have Craig Stanland as the next speaker in our White Collar Week Tuesday Speaker Series. Craig is a close friend who has been a member of our White Collar Support Group and ministry since 2013, and was a guest on our White Collar Week podcast. We sent copies of Craig’s book, Blank Canvas, to all of our support group members currently in prison – with rave reviews! Stay tuned for more information about upcoming speakers and events. – Jeff Grant
Craig is a powerful example of how to come back from the depths of professional and personal destruction and despair, survive and evolve in prison, and become a better, more fulfilled person living the life God intends for him. These lessons are universal – I’ve read Craig’s book several times and I highly recommend it for anyone navigating life’s difficulties. I guess that means everybody! Five stars!
Link to register for Craig’s talk on May 31st…
White Collar Support Group Blog: “Don’t Just Do Something, Sit There” by Fellow Traveler Bill Livolsi
Bill Livolsi is a Member of our White Collar Support Group that meets online on Zoom on Monday evenings. Bill has been a member of our ministry and support group since 2014. – Jeff
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I had the privilege of being topic leader at our May 16, 2020 White Collar Support Group meeting. This is text of that presentation:
We have a normal desire to solve our problems. And for my Fellow Travelers, once you add into the mix the anxiety, stress and the feelings of helplessness that accompany a criminal prosecution, the desire to repair the damage can be overwhelming, often to our detriment.
In many occupations being a take charge individual is how you advance your career. When issues arose, you dove in and you solved them. That’s how you proved your value to the organization, to your clients, to yourself.
My dad was a problem solver. Professionally he worked his way up from the mailroom, going to Wharton (undergrad) at night to be an international VP in the pharmaceutical business. My family, his friends, and his professional colleagues, looked to him for advice and solutions. I look to him still, even though he has been gone almost 13 years. He is the best man I have ever known. All I wanted, as an adult, was to be like my Father.
My willingness to take on the problems and challenges no one else wanted was very beneficial for my career too. I worked my way up the ladder to a CFO position by the latter part of the 1990’s. And as many of you know, this is where most of the problems, and difficult issues, organizations face end up. I was pretty good (and pretty lucky) at getting things right. It felt good to be the ‘go-to’ guy for my Company.
Unfortunately, there was a huge downside. My ‘fix it’ mentality also dominated my personal life and that didn’t work out so well.
“The skills that served you well in the advancement of your career aren’t necessarily the ones that will serve you now.” – Jeff Grant
In 2015 I was sentenced to 24 months incarceration after pleading guilty, in 2014, to one count of wire fraud and one count of conspiracy. I had been added as a defendant on a superseding indictment earlier that year. Many years prior, in 2007, I made the disastrous decision to inject myself into my spouse’s legal mess.
She and I met in early 2002 and became a couple a few months later. She was a private money manager. We married and had children. Our early years together were wonderful. I also invested significantly in the funds she managed, as did my family.
In 2004 we relocated to Oklahoma. At about the same time I left my CFO position in New York. I believed my finances and investments were in great shape, so I decided to retire early and spend time raising our two youngest children.
Life had other plans.
By 2006, things started to crumble. It started with strange calls to our home from one of her investors. Then, others starting showing up unannounced at our home. I had no idea why this was happening, and I was given several different explanations. There were civil lawsuits from investors including a court ordered freeze on her personal & business accounts.
Things were getting progressively worse into 2007. By late that year I was at my wits end. I was getting calls from family wanting an explanation. Instead of telling them the truth, that I didn’t know for sure what was going on and handing it off, I stayed in the middle. I passed along the information I was given. I assumed the information was accurate.
“An accurate understanding of reality is the essential foundation for any good outcome”. – Ray Dalio.
She let me know she secured another investor. This new investment would cover most of the redemptions that were due. This fact alone should have set off my alarm bells. It didn’t.
The on-going civil suits made it impossible for her to receive these funds, so I volunteered. I used my personal accounts to receive the investment on her behalf and to issue the pending redemptions.
There it was. Game Over. I just didn’t know it for another 6 years.
I have no doubt that you’re saying to yourself, how could you have been so stupid? Your actions were the textbook definition of a Ponzi scheme. What made you think this would solve your problem? Why didn’t you just walk away?
Good questions all.
I have done a lot of reading, research and reflection trying to get a better understanding of what was driving my decisions back then. There was overwhelming evidence that something was wrong, yet I was unmoved, even increasing my commitment. The passage of time brought clarity, and I understand why my decisions were so horrendously stupid and self-destructive.
- Greed. My priorities were horribly misplaced. Money and the acquisition of things took on an unhealthy importance.
- I Didn’t Grasp The Real Problem. The investment funds in question were nothing more than a Ponzi scheme (#1). The account freezes brought it all to a head.
- Sunk Cost. By 2007 I had invested 5 years in this relationship, and we had two children. I had vowed that this time around I would be a better husband, and a better father. Deep down I had to have realized that I did not know the full story, but I convinced myself that things would get better. They didn’t.
There’s more.
“The more invested we become in a decision, the more likely we are to rationalize or justify that decision, even if mounting evidence demonstrates it was the wrong one.”
“Escalation of commitment can happen in any aspect of our life. Think about the times when you over-invested in a failing project, stuck around in a miserable job, or when you’ve poured your heart and soul into a personal relationship that clearly wasn’t working.”
“Escalation is where people make errors because of their ego and their emotions. It’s not just a cold calculation of the loss of money or time. It’s the pain of threats to our sense of self. We’re afraid to admit a mistake and end up justifying a decision to ourselves.” (#2)
How did escalation manifest itself in my situation?
- Ego.
- My career experience convinced me I could solve this problem. I was supremely overconfident.
- Emotional Commitment.
- My family could be directly affected if this problem were not successfully resolved. I felt responsible to fix what was broken, but I was ashamed, and afraid, to talk with them.
- I would have been less emotionally attached to the outcome, and certainly could not have gotten directly involved, had the main actor been a stranger.
- I believed the survival of my marriage was dependent upon a successful outcome.
- I also believed, erroneously, that the future of my family relationships hinged me fixing this.
- Isolation.
- I disregarded the concerns of family and friends when they reached out to me.
- I ignored the important relationships that had been my reality checks in the past.
- By sequestering myself away from family and friends I had no one in whom I could confide and seek advice.
Did these emotional elements drive my decisions? Absolutely and unequivocally, yes. And it is clear to me these factors influenced my decisions far more than the money involved.
It wasn’t until I found my White Collar Support Group, and also served time in prison with other men like me, that I learned that emotional factors such as the ones I encountered are very common indeed. At one time or another almost all of us fell into the same trap, pouring more and more resources and ourselves into a bad decision, even when all the evidence was shouting ‘STOP’.
There are decades of research showing that the most powerful forces in our decision-making aren’t economic — they’re emotional. Had I done nothing in 2007, just sat there and let everything come crashing down, it’s almost a certainty I would not have ended up in prison.
It’s some consolation knowing that I’m not alone in the chronicles of disastrous decisions, and perhaps the only way for us to learn is by dealing with the consequences that follow them. I am hopeful that by sharing this I can help others avoid a similar fate.
Decision Making 101
- Is this really a problem?
- Breathe. There are very few problems in life that require immediate action.
- You likely don’t know as much about a situation as you think. Question what you think you know about any particular situation. There are things you know you don’t know (known unknowns), but there are things you don’t know you don’t know (unknown unknowns).
- Issues sometimes resolve themselves. Not suggesting you should put your head in the sand but recognize some issues self-correct.
- Why is this a problem? What is your desired outcome?
- Identify the right problem.
- Clearly define it and clearly define your goal(s).
- What is driving your urge/desire to fix/take control? Are you emotionally attached to the issue, or the outcome? It’s never wise to make a decision that is rooted emotions.
- What is the cause of the problem?
- Were events precipitated by your actions, or by the actions of others?
- Is this a problem you can realistically solve?
- If you didn’t cause the problem, it might be hard for you to resolve it without cooperation from others.
- You cannot control how others will perceive or react to your involvement.
- Do you need additional information or additional resources?
- Identify possible solutions. What could be:
- The easiest solution?
- The quickest solution?
- The best temporary solution?
- The best long-term solution?
- Set realistic parameters for success and failure so you know if/when to continue or abandon your effort.
- For example, what are the values and principles you don’t want to abandon or compromise?
- Vet your thinking with a knowledgeable and absolutely objective friend, colleague or mentor. Someone who will give you their unvarnished opinion. “An accurate understanding of reality is the essential foundation for any good outcome”.
Bill Livolsi is a Life Coach supporting the white collar justice community and a volunteer with Progressive Prison Ministries. He helps men and women facing prosecution for white collar and non-violent crimes navigate their journey – including rebuilding their lives after prison. He was prosecuted for a white collar crime and spent 13 months in Federal prison. Bill can be reached at whitecollarcoaching.com.
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- Review of the discovery documents with my defense attorney.
- Worklife With Adam Grant. How To Rethink A Bad Decision. March 29, 2021.
Entrepreneur: 3 Important Takeaways for Hiring Job-Seekers with Criminal Records, by Jeff Grant, Esq.
Jeff Grant is a member of our White Collar Support Group that meets online on Zoom on Monday evenings.
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Dear Friends,
I am pleased to share with you that an article that I authored titled 3 Important Takeaways for Hiring Job-Seekers with Criminal Records was recently published in Entrepreneur (see below).
As you know, overcoming the stigma and discrimination associated with having a conviction history is very near and dear to me, and I am personally invested in helping as many of the 70 million Americans like myself with conviction records secure the professional, educational, housing and other life opportunities we all need to thrive. The reality is that even long after serving our sentences, we are routinely denied gainful employment and thus the ability to meaningfully rebuild our lives. This article speaks to the immense scope of this issue and offers a simple, concrete solution on how we can begin to address it – by providing individuals who have completed their sentences with a clean slate.
A few months ago, I had the privilege of joining the Board of Directors of an organization called the Legal Action Center (LAC). For nearly 50 years, LAC has utilized a range of legal and policy strategies to fight discrimination, restore opportunities, and build health equity for individuals with arrest and conviction records, substance use disorders, and/or HIV/AIDS. Their proven track record of and ongoing commitment to helping tens of thousands of individuals overcome discriminatory barriers so they can support themselves, their families, and contribute to our shared communities is truly inspiring, and I am honored to partner with them in this critical work. The clean slate solution I mentioned above is just one of the many initiatives LAC is working hard to advance.
I cannot stress how important the efforts of organizations like LAC are to individuals like me – and our society at large. I do hope you’ll take a few moments to make a donation to support their mission – a gift of any size can help!
Thank you so much for taking the time to read this message, and please do not hesitate to reach out with any questions you might have.
With deep gratitude,
Jeff
Donate to The Legal Action Center here…
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