About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

71 Temp. L. Rev. 347 (1998)
How a Criminal Defendant's Death Pending Direct Appeal Affects the Victim's Right to Restitution under the Abatement AB Initio Doctrine

handle is hein.journals/temple71 and id is 357 raw text is: HOW A CRIMINAL DEFENDANT'S DEATH PENDING
DIRECT APPEAL AFFECTS THE VICTIM'S RIGHT
TO RESTITUTION UNDER THE ABATEMENT
AB INITIO DOCTRINE
INTRODUCTION
Howard F. Sahlen, Jr. founded a private investigation and security com-
pany, Sahlen & Associates, Inc. (SAI), in 1981.1 SAI began trading publicly
in 1984.2 Over the next five years, SAI grew into the world's fifth largest
security company,3 employing approximately twelve thousand workers in
nearly one hundred offices.4 SAI achieved this growth, however, by making
public stock offerings and obtaining bank loans through the use of fraudulent
financial documents.5 Specifically, SAI created $45 million in phony reve-
nues to attract thousands of public shareholders.6 In 1989, when these fraud-
ulent activities became public, SAI collapsed. Its stock price dropped from
$3 to less than 50 cents before trading finally was suspended.7
Sahlen, the founder and president, along with five other SAI officials,
pleaded guilty to various fraud charges.8 Another conspirator, John Kuczek,
a multimillionaire insurance salesman, was accused of papering over the
company's financial weakness [es] with bogus loans and billings.... . Kuczek
proclaimed his innocence, and went on trial with two other SAI executives.10
Sahlen testified at trial against his three former executives.11 In addition,
eight investors testified that they relied on the fraudulent financial informa-
tion SAI filed with the Securities and Exchange Commission (SEC) in decid-
ing to purchase SAI stock.12 Kuczek ultimately was found guilty of one
count of conspiring to defraud the SEC and to commit securities fraud, bank
fraud, and mail fraud.13 The district court for the Southern District of Flor-
ida sentenced him to thirty-seven months in prison, three years probation,
1. United States v. Logal, 106 F.3d 1547, 1548 (11th Cir. 1997).
2. Id.
3. Security Firm Execs Guilty, ST. PETERSBURc TIMES, Feb. 19, 1994, at 15A.
4. Logal, 106 F.3d at 1548.
5. Id.
6. Dennis Manoloff, 'Bolts' Ex-Owner Faces Trial Accused in Fraud Case, THE PLAIN
DEALER, Nov. 2, 1993, at 1E.
7. Warren Richey, Sahlen Officials Guilty Pair, Associate Linked to Fraud, SUN-SENTINEL,
Feb 19, 1994, at 14C.
8. Id.
9. Security Firm Execs Guilty, supra note 3, at 15A.
10. Warren Richey, Prosecutor: Officials Helped Cook the Books, SUN-SENTINEL, Feb 15,
1994, at 3D.
11. Richey, supra note 7, at 14C.
12. Richey, supra note 10, at 3D.
13. Logal, 106 F.3d at 1549-50.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 3,000 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline with pricing starting as low as $29.95

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most