CALL NOW

Facebook Linkedin Youtube

Defending Against Pill Mill Cases: Understanding Prescription Fraud Conspiracies

teakelllawcom on August 8, 2018

The federal government aggressively prosecutes pill mill cases and prescription fraud conspiracies, targeting physicians, pharmacists, clinic staff, and business owners accused of illegally prescribing or distributing controlled substances. A conviction can lead to lengthy prison sentences, massive fines, and permanent license revocation.

As a former federal prosecutor, I, John Teakell, have firsthand experience with these cases and understand how to challenge the government’s tactics. If you are under investigation or facing charges, knowing your legal options is critical.

What is a Pill Mill?

A pill mill is a medical practice—often a pain management clinic—that prescribes or distributes controlled substances such as hydrocodone, oxycodone, and fentanyl without legitimate medical justification.

Federal prosecutors classify pill mill cases as drug trafficking conspiracies, meaning defendants can face the same penalties as narcotics traffickers. These cases often involve:

  • Doctors issuing excessive painkiller prescriptions without proper examinations
  • Pharmacists filling fraudulent prescriptions despite red flags
  • Clinic staff fabricating or altering medical records to justify high-volume prescriptions
  • Patients obtaining prescriptions to resell on the black market

If you are facing healthcare fraud allegations, visit my healthcare fraud defense page to learn more about potential defenses.

Federal and State Laws Governing Pill Mill Cases

Several laws regulate prescription drug distribution, and violations can result in severe federal and state charges.

1. The Controlled Substances Act (CSA)

The CSA makes it a crime to distribute prescription drugs without authorization. Physicians accused of prescribing medications outside the scope of professional practice can face drug trafficking charges.

2. The Anti-Kickback Statute

Federal law prohibits healthcare providers from receiving financial incentives for prescribing or referring patients for services. Kickback violations are often charged alongside pill mill cases.

3. Texas Health and Safety Code § 481

Texas has some of the toughest prescription drug laws, allowing for state-level charges in addition to federal prosecution.

If your case involves multiple charges, visit my defending against multiple charges page for insights into handling complex legal cases.

Who Can Be Prosecuted in a Pill Mill Case?

1. Physicians and Pain Clinic Owners

Doctors who prescribe large volumes of opioids without documented medical necessity are primary targets. Federal agencies monitor prescribing patterns, and unusual activity can trigger an investigation.

2. Pharmacists

Pharmacists accused of filling suspicious prescriptions without proper verification can face drug distribution conspiracy charges.

3. Office Managers and Medical Staff

Clinic staff involved in scheduling patients, handling prescriptions, or processing fraudulent billing can also face serious federal charges.

If you are under investigation for prescription fraud, visit my white-collar crime defense strategies page for legal guidance.

Penalties for a Pill Mill Conviction

Federal authorities treat pill mill operations as major drug crimes, imposing harsh penalties that can devastate careers and businesses.

1. Federal Prison Sentences

  • Drug trafficking charges can lead to 10-25 years in federal prison
  • Conspiracy charges can increase sentencing exposure

2. Massive Fines & Asset Seizure

  • Fines can exceed $1 million, depending on the case
  • The government may seize bank accounts, property, and other assets linked to the operation

3. Loss of Medical or Pharmacy Licenses

  • Physicians and pharmacists face permanent license revocation
  • Exclusion from Medicare and Medicaid programs can effectively end a medical career

For insights into federal fraud prosecutions, visit my federal cases page to learn how I defend against these charges.

Defenses Against Pill Mill Charges

A strong legal strategy can challenge the prosecution’s case. Common defenses include:

1. Lack of Criminal Intent

Prosecutors must prove that you knowingly issued illegal prescriptions. If you followed standard medical protocols, I will argue that the government has failed to prove criminal intent.

2. Insufficient Evidence

Many cases rely on questionable data, unreliable witnesses, or manipulated statistics. I scrutinize the evidence for weaknesses that can lead to dismissals.

3. Entrapment by Law Enforcement

If undercover agents or confidential informants coerced or pressured you into illegal activity, I can use entrapment defenses to challenge the case.

4. Compliance with Medical Standards

If you documented medical necessity for prescriptions, I will present expert testimony and medical board guidelines to establish compliance.

To learn more about defending against federal drug cases, visit my drug crimes defense page.

Why Choose John Teakell for Your Defense?

As a former federal prosecutor, I know how the government builds pill mill cases—and how to dismantle them. My legal defense strategies have helped doctors, pharmacists, and medical staff avoid severe penalties, career-ending consequences, and financial ruin.

What Sets Me Apart?

  • Decades of Federal Court Experience – Skilled in defending high-stakes fraud and drug cases
  • Former Federal Prosecutor Insight – Knowledge of government tactics before they use them
  • Proven Track Record – Securing dismissals, acquittals, and reduced sentences

If you are under investigation, do not wait for charges to escalate—act now to protect your future.

Contact Teakell Law Today

A pill mill or prescription fraud charge can threaten your career, finances, and freedom. With decades of legal experience, I provide aggressive and strategic defense representation to fight these allegations.

visit my contact page to schedule a confidential consultation.

Health Care Fraud Prosecutions – Upcoding and Overbilling

teakelllawcom on August 8, 2018

Health Care Fraud Cases

There are a variety of “health care fraud” activities that cause physicians and their staff to fraudulently obtain monies from insurance companies and/or government programs that involve doctor visits, chiropractic care, medical procedures, prescription medication, and medical supplies. The focus of this article is criminal investigations and prosecutions for activities related to health care, which are fraudulent.

Fraudulent activities could be misrepresentations by physicians, chiropractors, nurse practitioners, nurses, medical staff, hospital administrators, pharmacists, and patients. These representations could be: misrepresentations on prescriptions for medication (controlled drugs), wrong or improper billing for reimbursement to doctors’ offices, performing unnecessary procedures, claiming procedures performed that were not performed, and prescribing and ordering unnecessary supplies.

Upcoding and Overbilling

Improper billing and claiming procedures performed that were not, are commonly referred to as “upcoding,” meaning that a medical staff person will claim a more intense and more expensive code on claims for reimbursement by insurance companies and/or Medicare or Medicaid. The reason for upcoding is to either receive a reimbursement for work not performed, or to receive a reimbursement for a more expensive procedure that sends more money to the doctor than normally would have been received for the work that was performed.

The same applies to overbilling for services or supplies. This means that the services claimed for reimbursement were either not performed, supplies were not received and given to the patient, and/or the reimbursement claimed was for services not given or performed.

What to Do If You Believe You Are a Target of the Investigation

Hire an experienced federal defense attorney who knows the U.S. Attorney’s / Department of Justice’s prosecution strategies. That is, an experienced federal attorney who has worked many of these cases is best suited to defend you.

The well-experienced federal defense attorney can learn much from the federal prosecutor’s office about the evidence that they believe they have against you. Your experienced attorney can also delay potential formal charges by meeting with prosecutors and making presentations of potential evidence in your favor.

Defend Your Position

A well-experienced federal attorney will work with you to try to prove to the U.S. Attorney or the U.S. Department of Justice attorney that the government’s allegations are wrong or overstated. A pro-active position can serve you well in order to buy time to learn as much as possible about the evidence that the government is holding. Then, you can act in order to try to prevent a grand jury from bringing formal charges against you.

Pro-Active When Time Counts

You want to try to get as much favorable evidence to the prosecutor as possible, or depending on the government’s stance, enough to initially determine if the prosecution is willing to seriously consider your evidence, and therefore, not charge you. If the prosecution is determined to move forward with a case against you no matter they evidence presented or verbalized, then you may want to hold it later until hearings or a trial. A former federal prosecutor/experienced federal defense attorney can guide you to make this decision.

Call Attorney John Teakell

Mr. Teakell was a federal prosecutor for many years, and he has years of experience defending people who have been charged, or who are under investigation, for health care fraud charges and other federal cases.

Money Laundering: How You Could Be ‘Guilty’ Without Knowing It

teakelllawcom on July 2, 2018

Money laundering is a serious crime in which “dirty earnings,” or funds earned through criminal activities, are funneled into an operation that seems legitimate in order to “wash” the cash for mainstream use. From a legal perspective, cases of money laundering aren’t always cut-and-dry, especially to individuals or companies who feel they’ve been wrongfully accused. 

Take the recent case of Dallas-based Elemetals. Elemetals is a precious metals company that develops business models catering to the entirety of the precious-metals process, from attaining raw material to acquiring finished products. After over a decade in business, the company received a $15 million fine in money laundering activities related to gold. Here’s how it went down.

Special Obligations Under Money Laundering Rules

While Elemetals was not named as the engine behind the scheme, the company found itself in hot water for failing to establish an anti-money laundering program. According to the Miami Herald — one of the “guilty” Elemetals locations was in Doral — the company violated a Bank Secrecy Act law when it “willfully failed to develop, implement and maintain an [anti-money-laundering program] reasonably designed to prevent Elemetal from being used to facilitate money laundering and the financing of terrorist activities.” 

In other words, Elemetals wasn’t technically doing the money laundering, but it was responsible for it because it had an obligation to discourage such activities given the unique nature of their business. Some companies, especially those dealing internationally, may be “guilty” and not even aware of it! 

Fortunately for Elemetals, $10 million of the fine likely will be satisfied when the company gets the Peruvian government to sign off on and keep a yet-to-be-received shipment. The forfeiture will leave a fine of $4 million as prosecutors and Elemetals’ attorneys agree the company has satisfied $1 million of the debt. 

Know Your Options

As bad as it is for Elemetals, their case could have turned out much worse. Fortunately for them, they were able to mitigate the damages through forfeitures and a willingness to comply with implementation and development of an anti-money laundering program. They also were able to unload enough assets to satisfy 20% of the remaining balance. 

But a $4 million fine in any business is seismic, and whether the company is able to survive is anyone’s guess. If you’re accused of money laundering, here are three defenses you may wish to consider: 

  • The crime was committed under duress. You can prove someone else forced you to do it under direct or implied direct threat. 
  • There isn’t enough evidence to prove the alleged money laundering came from an illegal activity that you committed. 
  • You did not have the intent to commit a crime. Think accountants, bankers, and other people who deal with large quantities of money. They may be “moving” the money without realizing the criminal nature behind it. 

While all these strategies can be effective, nothing works if you have inferior representation. John Teakell has defended many cases like these throughout his 25+ years as an attorney. He’s worked on the prosecution and defense sides and can view a case at both angles to develop the best possible strategy. If you need help with your defense, give him a call or reach out online today. 

How Gun Crimes Charges Can Affect Your Second Amendment Rights, Even in Texas

teakelllawcom on June 26, 2018

Gun crimes have never been more front-and-center in the United States than they are right now. With Parkland and Santa Fe, there is an understandable amount of fear and apprehension. And that could soon start leading to more arrests for weapons violations. 

One recent case at De Soto High School found 17-year-old student Isaiah Manuel Joe Reyes facing felony gun charges for carrying a handgun in a prohibited place (the school itself). Even though gun laws in Texas are looser than in other states throughout the US, settings clearly may still trigger criminal charges. 

Gun Crimes Sans Violence

You don’t have to commit an act of violence with a firearm to lose your Second Amendment privileges. Any type of felony conviction can make owning and carrying a firearm a crime, so the first thing you need to do to avoid this situation is to keep your nose clean in other matters of the law. 

You should know the law as it relates to prohibited weapons and prohibited places. If you’re in a club, school, or other location where carrying is strictly prohibited, then knowingly violating that law can place you on shaky legal ground. 

Other off-limits weapons can include zip guns, brass knuckles, switchblade knives, or explosive devices. A felony conviction for one of these — even without doing any damage to property or another human being — can prohibit you from future gun ownership. 

Beyond this, other crimes that may have nothing to do with a weapon — fraud, conspiracy, domestic violence, larceny — can put you on “the list.” 

A Texas Problem

One of the most difficult things to accept in Texas, where we value our individual rights and independence, is the fact you can lose a constitutional right you’re born with simply because you forgot a weapon was in your bag in a prohibited location. 

That’s not quite a uniquely Texas problem, but it can certainly happen here where ownership is so popular and prevalent. When fighting weapons violations, it’s important you have a skilled attorney with experience fighting to preserve those Second Amendment rights and privileges. 

John Teakell has worked for more than two decades to defend the accused on a number of criminal charges. He has experience devising effective legal strategies for gun-related offenses. If you need assistance in this or any other area of criminal defense, consider dropping by his Dallas office or contacting him online today.

How Should You Approach Counterfeit Goods Charges?

teakelllawcom on June 23, 2018

Production and transportation of counterfeit goods have become more common issues in the information age, and Dallas is shaping up to be a hotspot for such activities. In the last month, there have been three noteworthy stories break involving everything from electronics, clothing, and money, to drugs, explosives, and firearms. 

The highest-profile incident recently occurred at DFW Airport. Here’s what went down. 

Ten Airline Employees Under Arrest

According to the Fort Worth Star-Telegram, a federal investigation launched in August 2016. Some of the 10 suspects were involved in transporting a substance.  This “believed to be methamphetamine” that turned out to be counterfeit drugs “through DFW Airport and onto commercial airline flights.” The accused agreed to prices between $1,500 and $2,000 to move the materials.

Subsequent charges were accumulated for explosives and firearms. Employees were from multiple airlines working out of DFW. 

In the case of highly-regulated (and dangerous or illegal) materials like those in the DFW Airport case, the “authenticity” of materials isn’t quite as important as the intent to distribute materials while believing their legitimacy. In other cases — like with typically “harmless” consumer products or fake currency — the major issue is the counterfeiting itself. How is it punished, and what’s the best defense? 

Paying the Price for Counterfeit Goods

In Texas, a counterfeiting or forgery conviction can result in imprisonment (2-10 years) as well as fines of up to $10,000. That can compound depending on the number of incidents, the intent behind the counterfeiting, and the potential damages to life, health, and property. 

Counterfeiting, as in the DFW Airport case, also has a tendency to turn up in more serious criminal elements, thus increasing the severity of any conviction. These are factors to consider before knowingly entering into an agreement where you will be creating, handling, or transporting counterfeit goods. 

If Facing Charges

The key to any counterfeit goods defense is to know your position on the “supply chain.” Are you the creator, the distributor, or the end user? Did you lack the intent in using or transporting the product to defraud or harm someone else?

If you can establish a good-faith belief the product was legitimate, that makes the prosecution’s desire to convict more difficult to accomplish. While it may not keep you out of trouble altogether, it can certainly lessen the legal repercussions.

No attorney can guarantee your outcome when you find yourself facing counterfeiting charges.  However, experienced attorneys are worth their weight in actual gold (not pyrite). They can help you devise a strong strategy for fighting the charges.  John Teakell offers services for a variety of white-collar crimes, including counterfeit goods defense. He’s willing to help in any way he can. Just give him a call at or reach out online.

Conspiracy to Commit Fraud: Where Should Your Legal Strategy Begin?

teakelllawcom on June 21, 2018

Conspiracy to commit fraud and the fraud itself are two different crimes. While both should be taken seriously, the presence of one can escalate the type of punishment that you might receive if found guilty. 

Take the recent case of Dr. Jorge Zamora-Quezada, who has been charged by federal authorities with approximately $240 million in healthcare fraud charges. 

A Pattern of Misdiagnoses 

Dr. Zamora-Quezada is a rheumatologist in the Dallas region. In 2009, the Texas Medical Board penalized him for “fraudulent, repetitive, and excessive medical procedures on patients in order to increase his revenue.”

Following that reprimand, in 2013, Zamora-Quezada, 61, recommended costly knee injections to “strengthen cartilage” for a patient supposedly suffering from rheumatoid arthritis. Except she wasn’t. When the injections resulted in discoloration of the legs, it was determined by another doctor the injections had been unnecessary. 

The determination plays nicely into the hands of prosecutors bent on proving a pattern of misdiagnoses and unnecessary treatments. It’s this pattern effect that can lead to conspiracy charges. 

What Do You Do When Charged with Conspiracy to Commit Fraud? 

The first step you should take is to mount your legal defense. That starts with taking a hard look at the facts of the case. Is there merit to the willfulness of the fraud itself?

If willfulness isn’t there, it can be hard to prove the planning portion, which is what can trigger a conspiracy conviction. However, prosecutors have a couple of tools in their arsenal to get the convictions they seek. 

Firstly, there is the number of damages. In the doctor’s case, the charges are $240 million — enough to result in serious jail time. Secondly, there is the number of incidents. In Dr. Zamora-Quezada’s case, the $240 million comes from multiple incidents over about a decade. 

Defending a case like Zamora-Quezada’s would require a deep dive into each of these incidents. Was there intent in every case or simply negligence? If negligence can be determined, it can result in a downgrade of charges or, in some cases, an all-out dismissal. 

The doctor’s case is still playing out, so it’s too early to know what the outcome will be. However, it’s important for anyone charged with conspiracy to commit fraud — or any other crime — to evaluate the incidents, the charges, and their intentions.

An experienced legal strategist like John Teakell can help you mount the best possible defense. Teakell has years of experience in the Dallas legal community arguing conspiracy cases, and he invites you to reach out online or drop by the Dallas office with any questions you may have. 

Charged With Securities Fraud: Remember This One Truth

teakelllawcom on June 19, 2018

Securities fraud can take many forms from the questionable to the egregious. One of the latter types of cases happened in our own backyard. 

In 2016, a McKinney pastor was charged with bilking Texans out of more than $23 million. Many of them were elderly, and in a number of the cases, he took whole life savings. 

The Scheme

Fifty-nine-year-old Timothy Booth was a pastor at Way of Grace Church when he launched an investment company that guaranteed 9 percent return on investment. The company was supposedly backed by an $85 million patent that turned out to be worthless.

By the time anyone was the wiser, Booth and his wife had spent much of the money on lavish trips, expensive car rentals, and a variety of other frivolous purchases. Booth was sentenced to 68 years in prison earlier this year, according to the Dallas News.

A Life Sentence for Securities Fraud?

In the above case, yes. What Booth received was essentially a life sentence. At 59, he’ll probably never see the light-of-day. That’s true even if he enjoys good health or an early release. But given the nature of this particular crime, it’s easy to see how the court arrived at the conclusion that it did. 

Securities fraud can ruin livelihoods for the victims. It also can ruin livelihoods for those accused of it. Booth’s guilt was pretty clear, but that isn’t always the case. Sometimes criminal charges of securities fraud are brought where none exist, or where improprieties are at best negligence instead of fraudulent. 

Over the years, outcomes have included no-fault civil settlements, dismissal of charges, no charges being filed at all, probation, or minor civil damages. The lesson in this is clear: even though there was enough evidence in many of these cases to raise eyebrows or proceed with investigations, the evidence wasn’t there to convict or even indict. 

Charged Does Not Mean Guilty

To avoid the worst, you’ve got to seek help from the best. A solid criminal defense attorney will know the ins and outs of the financial law. Where evidence lacks clarity, he or she will be able to create the strongest possible legal strategies to either avoid charges or lessen damages. 

For over 25 years, John Teakell has worked on both sides of the courtroom, particularly in cases of financial and white-collar criminal defense. If he can help you through your case, drop by the office or contact him online today.

Filing False Tax Returns: Protect Your Rights and Future

teakelllawcom on June 16, 2018

False tax return charges are some of the most serious allegations a person can face in federal court. These cases often come with life-altering consequences, including significant fines, imprisonment, and lasting damage to your reputation. However, not all accusations are as clear-cut as they may seem. Understanding the law and working with experienced legal counsel can make all the difference.

Understanding False Tax Return Allegations

Filing a false tax return involves intentionally providing inaccurate or misleading information to the IRS. While errors on a tax return are not uncommon, what separates a mistake from a crime is intent. Common examples of false tax return allegations include:

  • Underreporting Income: Failing to report all sources of income, such as freelance earnings or investments.
  • Inflated Deductions: Claiming deductions or credits that don’t apply.
  • False Dependency Claims: Listing dependents who don’t meet IRS criteria.
  • Omitted Income: Leaving out earnings from side jobs or untaxed sources.

These allegations can arise from misunderstandings, bookkeeping errors, or even the actions of an untrustworthy tax preparer. To better understand tax-related offenses, visit our Tax Violations Defense page.

Why False Tax Return Cases Are Complex

In cases involving false tax returns, the government carries the burden of proving intent. Prosecutors must demonstrate beyond a reasonable doubt that the accused knowingly and willfully provided false information. This requirement creates a significant challenge for the prosecution, as honest mistakes or reliance on incorrect advice do not constitute criminal behavior.

The Consequences of a Conviction

A conviction for filing a false tax return can lead to severe penalties, including:

  • Imprisonment: Up to three years for each false return.
  • Hefty Fines: Substantial financial penalties in addition to back taxes and interest.
  • Professional Fallout: For licensed professionals, a conviction can result in the loss of certifications and career opportunities.
  • Damage to Reputation: A federal conviction can harm personal relationships and future prospects.

If your case involves additional tax-related charges, such as evasion, learn more about your defense options on our Tax Evasion Defense page.

Effective Defense Strategies

Each case is unique, but the right defense can significantly impact the outcome. When defending against false tax return allegations, these strategies often come into play:

Proving Lack of Intent

Errors or omissions are not crimes unless the government can prove intent. Demonstrating good-faith efforts to comply with tax laws can weaken the prosecution’s case.

Challenging the Evidence

The IRS’s evidence often includes records or assumptions that lack proper context. We meticulously examine every detail to identify weaknesses or procedural violations.

Establishing Good Faith Reliance

If a client relied on a professional tax preparer or advisor, this can serve as a defense, especially when errors were due to negligence rather than willful misconduct.

Highlighting Procedural Missteps

Improper handling of evidence or violations of your constitutional rights during the investigation can lead to dismissal of charges.

For additional resources on building a strong defense, visit our White-Collar Crime Defense page.

What Sets My Defense Approach Apart

When you face allegations as serious as filing false tax returns, you need an attorney with the knowledge, experience, and dedication to fight for your future. I bring:

  • Deep Knowledge of Tax Law: I understand the intricacies of tax codes and how they apply in federal cases.
  • Aggressive Representation: Whether in negotiations or court, I relentlessly pursue the best outcome for my clients.
  • Tailored Defense Strategies: Every case is unique, and my team ensures your defense is built to address the specific challenges you face.

Contact My Office for Trusted Legal Support

Facing charges for filing false tax returns is daunting, but you don’t have to navigate this alone. With the right legal team by your side, you can challenge these accusations and protect your future. Contact my office today for a consultation. Together, we’ll take the first steps toward building your defense and reclaiming your peace of mind.

The 3 Questions Important to Every Healthcare Fraud Defense

teakelllawcom on June 14, 2018

Healthcare fraud is a crime that is becoming more common, and if you look at the industry, it’s almost understandable. When you can’t call a hospital and get a straight answer on how much a procedure costs, you’ve got an environment that lends itself to fraudulent activity.

One case recently hit pretty close to home. A group of conspirators — one of them a Texas man — posed as Cerner and defrauded multiple victims out of millions of dollars. Here’s how it went down.

The Cerner Ruse

Becker’s Hospital Review reports that a group of individuals — among them Suresh Mitta, Albert Davis, and four other conspirators — “exploited Cerner’s reputation in the healthcare industry to manipulate business transactions and court proceedings for the conspirators’ benefit.” The incidents happened between Aug. 25, 2008, and Feb. 19, 2015. Several lost millions.

The Dallas Medical Center was named as one of the victims. Fake Cerner “attempted to sell a purported newly developed MRI system” to the hospital. They created fake email accounts for cardiologists in the Dallas area to increase the demand. The DMC didn’t check into the legitimacy good enough and ended up paying out $1 million for equipment it never received.

It was a perfect scheme until it wasn’t. As it turns out, not delivering on a $1 million payout is the sort of thing your customers notice. All parties now face charges. But who knew what? That’s the question where a defense strategy for something like this would begin.

Ignorance or Intent?

According to the site, the conspirators created a fake Cerner business, bank account, internet domain, and went to the trouble of leasing virtual office space in Kansas City, Mo. Furthermore, “They fabricated documents, price quotes, agreements, and invoices that appeared to be legitimate Cerner documents. They also developed fake Cerner employees, as well as fake physicians and respected leaders to support the counterfeit business and its products.”

In a case like this one, guilt is pretty clear at the top of the food chain. But hypothetically speaking, if you were one of the low-level conspirators, it’s possible that criminal activity like this could go on under your nose without you knowing it, all the while you are facilitating it. The questions you’ve got to have good answers to in this situation (or any fraud charge, for that matter):

  • How much did you know?
  • When did you know it?
  • What did you do after you found it out?

Healthcare Fraud Defenses Demand Experience

If you have been caught up in a healthcare fraud scheme and you need the knowledge of an experienced attorney, John Teakell’s number is the one you should be calling. You also can reach him online or at his Dallas office. An outcome cannot be guaranteed, but you can rest easier knowing that you will get the very best healthcare fraud defense possible to your situation.

The Worst Mistakes You Can Make Using Blockchain

teakelllawcom on June 8, 2018

The worst mistakes you can make with any new technology start with understanding. Following the crowd. Not knowing what you’ve gotten yourself into before it’s too late.

Just look at all the phony news stories that people share on social media without halfway vetting them. They end up making themselves look ignorant and uninformed, and that can cause damage to their reputations.

Similarly, Bitcoin and, more specifically, other virtual currencies, have gone from the hip new thing in entrepreneur circles to speculator-driven “investments” that can lose the unknowledgeable user thousands of dollars in the time it takes to go to the bathroom.

As a result of this volatility, many people have shied away from using the underlying technology known as blockchain.

Blockchain Itself Isn’t Scary

At the heart of any blockchain is transparency. The users assign value to whatever the “currency” or commodity supported by the blockchain actually is.

Blockchain has positive transformative uses to consider in the fields of transportation, logistics, journalism, government, banking, healthcare, and a variety of other fields.

Imagine paying half what you do now for health insurance because blockchain has cut the costs of doing business and providing services thanks to newly discovered efficiencies. While something like that may be a long-term benefit, we’re heading in the right direction.

That said, blockchain isn’t without areas of concern. Here are some of the worst mistakes you can make with it.

  • Getting started too early: no plan, no purpose, no partners
  • Initial coin offerings: going after ICOs that aren’t tied to any tangible benefit other than the coin itself
  • Poor technological infrastructure: this would include a poorly developed platform, as well as a blockchain with too few users on the peer-to-peer network
  • Not staying abreast of regulatory change: much is still to be decided stateside, federally, and in courtrooms across the US; if you’re not staying up-to-date on the trends, then you’re setting yourself up for disaster.

Look to the Law to Avoid These Blockchain Mistakes

As you delve into this technology, make sure you have someone in your corner ensuring that you can avoid the blockchain mistakes of others. John Teakell, a former special trial counsel for the US Securities and Exchange Commission, has his fingers on the pulse of this developing field of law as well as other “white collar” areas. If you have any questions about using blockchain in your business, reach out online or visit his Dallas-based office.