Justia White Collar Crime Opinion Summaries

Between 2007 and 2016, a group operating from Romania, including the defendant, engaged in a range of cybercrimes targeting U.S. victims. Their activities included an eBay auction fraud scheme, cryptocurrency mining, and identity theft, which together infected tens of thousands of computers and resulted in millions of dollars in losses. The defendant, along with two co-conspirators, was indicted on multiple counts, including conspiracy to commit wire fraud, aggravated identity theft, and money laundering. One co-conspirator pleaded guilty, while the defendant and another went to trial and were convicted on all counts except for a sentencing enhancement.The United States District Court for the Northern District of Ohio initially sentenced the defendant to 216 months' imprisonment and did not impose restitution, after the government stated it was not seeking restitution at that time. In contrast, the co-conspirator who pleaded guilty was ordered to pay substantial restitution. The defendant appealed certain sentencing enhancements, and the United States Court of Appeals for the Sixth Circuit affirmed some enhancements, reversed others, and remanded the case for resentencing. On remand, the district court treated the remand as a general one, held a de novo resentencing, and imposed restitution for the first time in the amount of $853,651.99, to be shared jointly and severally with co-defendants. The defendant did not object to restitution at resentencing but subsequently appealed, arguing that restitution had been waived, that he was denied access to the underlying restitution information, and that the imposition of restitution was vindictive.The United States Court of Appeals for the Sixth Circuit held that, under its precedent, a general remand permits the government to seek restitution even if it was previously waived, and that restitution was mandatory under the relevant statute. However, the court found plain error in the process used, as the defendant was not provided with the underlying restitution information as required. The court affirmed the imposition of restitution but vacated and remanded for resentencing on the restitution amount. View "United States v. Miclaus" on Justia Law

The defendant, an attorney, was indicted in Riverside County for conspiracy to present false or fraudulent claims, multiple counts of making false or fraudulent claims, and numerous counts of money laundering, all allegedly occurring between 2015 and 2018. After several years of litigation, including a jury trial that resulted in a hung jury, the prosecution filed a new criminal complaint in a separate case, charging the defendant with felony acceptance of business with reckless disregard for whether the business intended to violate insurance fraud statutes. On the same day as the new charge, the defendant entered a guilty plea in the new case as part of a plea bargain, under which the original indictment was dismissed as to him. The plea agreement included dismissal of certain worker’s compensation liens and credited him for time served under the original case. The defendant was placed on probation.After the dismissal of the original indictment, the defendant petitioned the Riverside County Superior Court to seal his arrest and related records under Penal Code section 851.93, arguing that the arrest did not result in a conviction. The People opposed, contending that the conviction in the second case was based on the same conduct as the original charges, making the defendant ineligible for relief under the statute. The Superior Court denied the petition, finding a factual connection between the original arrest and the later conviction.On appeal, the California Court of Appeal, Fourth Appellate District, Division Two, reviewed whether the lower court erred in denying the petition. The appellate court held that overwhelming evidence demonstrated a causal link between the conduct underlying the original arrest and the subsequent conviction. Because the later conviction was derived from the same behavior that led to the initial arrest, the defendant did not qualify for relief under section 851.93. The order denying the petition was affirmed. View "People v. Rifat" on Justia Law

A Colorado dentist operated his practice using an abusive trust-based tax scheme promoted by a third party. Over seven years, he funneled earnings through a series of sham trusts to disguise income and claim personal expenses as tax deductions. The scheme involved assigning most of his business to a trust, which distributed income through family and charitable trusts, ultimately allowing him to retain control over his earnings without paying taxes. Despite repeated warnings from professionals, the defendant persisted. He continued the scheme even after being notified of a criminal investigation, resulting in over $1.6 million in tax losses to the government.A federal grand jury indicted him for six counts of tax evasion, one for each year from 2017 to 2022. He pleaded guilty to all counts in the United States District Court for the District of Colorado. At sentencing, the court calculated the total loss—including uncharged conduct from 2016 and 2023—and determined the base offense level under the U.S. Sentencing Guidelines. The court added a two-level enhancement for the use of sophisticated means and considered mitigating factors such as acceptance of responsibility and zero-point offender status. The advisory guidelines range was set at 33–41 months, and the court imposed a sentence at the top end: 41 months’ imprisonment, supervised release, restitution, and a fine.The United States Court of Appeals for the Tenth Circuit reviewed the sentence for procedural and substantive reasonableness under a deferential abuse of discretion standard. The court held that including the 2023 tax loss and applying the sophisticated means enhancement were proper under the Guidelines. It also found the sentence substantively reasonable in light of the § 3553(a) factors and affirmed the district court’s judgment. View "United States v. Ulibarri" on Justia Law

Two major airline crashes in 2018 and 2019 involving Boeing 737 MAX aircraft led to the deaths of hundreds of passengers and crew. Investigations revealed that Boeing had concealed important safety information about modifications to the planes’ flight control system, contributing to the crashes. The Department of Justice (DOJ) charged Boeing with conspiracy to defraud the United States but later entered a Deferred Prosecution Agreement (DPA) in 2021, requiring Boeing to pay significant penalties and undertake compliance measures. After Boeing allegedly breached the DPA, the DOJ pursued a Non-Prosecution Agreement (NPA) in 2025, again imposing penalties and compliance obligations in exchange for dismissing the criminal charge. Family members of crash victims challenged both agreements, asserting violations of their rights under the Crime Victims’ Rights Act (CVRA).The United States District Court for the Northern District of Texas found that while the DOJ had originally failed to confer with families before the 2021 DPA due to a legal error, there was no bad faith, and the court lacked authority to modify or review the substance of the DPA or NPA. The district court later granted the DOJ’s motion to dismiss the prosecution against Boeing after the NPA, finding the DOJ’s actions were not in bad faith and were adequately explained.On appeal, the United States Court of Appeals for the Fifth Circuit held that the families’ challenge to the 2021 DPA was moot since the agreement was no longer in effect after Boeing’s breach. Addressing the NPA, the Fifth Circuit concluded the DOJ had fulfilled its obligation to confer with the families and had not misled them. The court also determined it lacked jurisdiction under the CVRA to substantively review the district court’s dismissal of the prosecution. The petitions for writ of mandamus were denied. View "Ryan v. USA" on Justia Law

The case involves allegations by two relators, acting on behalf of the United States, that Amazon.com, Inc. and Amazon.com Services, LLC facilitated and conspired with foreign manufacturers to submit false records to the U.S. government. The relators claimed that these manufacturers, who sold fur products via Amazon’s platform, provided false information on Customs Declarations to avoid paying mandatory tariffs and inspection fees on imported fur products. According to the complaint, Amazon was not the importer of record, but the relators alleged that Amazon either knew or should have known about the fraudulent conduct due to discrepancies in documentation and the absence of required forms, and that Amazon nonetheless continued to market, store, and deliver the products.The United States District Court for the Southern District of New York reviewed the relators’ second amended complaint under Federal Rule of Civil Procedure 12(b)(6). The court dismissed the claims, concluding that the relators failed to adequately allege that Amazon had the requisite knowledge or causation necessary for liability under 31 U.S.C. § 3729(a)(1)(G) (the “reverse false claims” provision of the False Claims Act), and failed to plead the essential elements of a conspiracy claim under § 3729(a)(1)(C), including an agreement to violate the statute and overt acts in furtherance of such a conspiracy.On appeal, the United States Court of Appeals for the Second Circuit affirmed the district court’s dismissal. The Second Circuit held that the relators did not plausibly allege that Amazon had actual knowledge, deliberate ignorance, or reckless disregard regarding the foreign manufacturers’ false claims, as required by the statute. The court also determined the relators had not alleged facts showing an agreement or overt act necessary to support a conspiracy claim. Thus, the district court’s judgment dismissing the complaint in its entirety was affirmed. View "United States of America v. Amazon.com, Inc." on Justia Law

Over a period of six years, the two defendants participated in a scheme involving the creation of multiple business entities and bank accounts, which were used to facilitate the transfer of large sums of money. One defendant directed friends and family members to register businesses and open accounts on his behalf, while the other registered a business and opened accounts at his request. The operation purported to involve purchasing goods domestically and exporting them overseas, but most of the funds came from a single victim who was deceived in an online romance scam. The defendants withdrew substantial amounts of cash from these accounts and used the funds for personal expenses, while maintaining little to no legitimate business records.After law enforcement began investigating, both defendants were questioned about their activities. They denied knowledge of any illegal source of funds and claimed to believe the business was legitimate. Nonetheless, evidence showed inconsistent statements, continued operation after warnings from banks and law enforcement, and a lack of documentation for the purported business transactions. A grand jury indicted both defendants for conspiracy to commit money laundering. At trial in the United States District Court for the District of New Hampshire, both defendants testified that they were unaware of the illegal origins of the funds, but a jury found them guilty. One defendant also challenged the government’s arguments at trial and the sentencing calculation.On appeal to the United States Court of Appeals for the First Circuit, both defendants argued that the evidence was insufficient to support their convictions, and that the district court erred in its jury instructions regarding willful blindness and good faith. The First Circuit held that the circumstantial evidence was sufficient to sustain the convictions, and that the willful blindness and good faith instructions were proper. The court also found no error in the government’s arguments or in the sentencing calculation, and affirmed both the convictions and the sentence. View "US v. Sepetu" on Justia Law

The defendant, the former mayor of Guaynabo, Puerto Rico, was indicted on three federal charges: conspiracy to commit federal-program bribery, federal-program bribery and aiding and abetting, and extortion under color of official right. The indictment alleged that while serving as mayor, he used his authority over municipal contracting to steer contracts to a local construction company owned by another individual, in exchange for cash payments. Some of these payments were characterized by the government as bribes, while the defense argued they were campaign contributions intended to pay off campaign debt.The United States District Court for the District of Puerto Rico denied the defendant’s pretrial motion to dismiss the indictment and later denied his motion for judgment of acquittal after the jury found him guilty on all counts. The district court found that the evidence supported the jury’s verdict, sentenced the defendant to concurrent terms of imprisonment and supervised release, and rejected his arguments regarding defects in the indictment, prejudicial variance, improper jury instructions, and jury bias.On appeal, the United States Court of Appeals for the First Circuit reviewed the sufficiency of the evidence de novo, as well as other challenges. The First Circuit held that a rational jury could have found beyond a reasonable doubt that the payments in question were not campaign contributions, and thus the requirements of McCormick v. United States did not apply. The court further held that there was sufficient evidence of a quid pro quo and that the timing and nature of the payments did not convert them into mere gratuities. The court also concluded that there was no prejudicial variance, the jury instructions were not impermissibly biased, and the defendant’s right to an impartial jury was not violated. The First Circuit ultimately affirmed both the convictions and the sentences. View "US v. Perez-Otero" on Justia Law

After Hurricane Harvey in 2017, an individual applied for disaster relief from FEMA, claiming her Houston residence was damaged and providing supporting documentation for her claim, such as hotel receipts, utility bills, and repair estimates. FEMA awarded her approximately $33,000. Later, federal authorities investigated and alleged that the application was fraudulent, asserting that the listed residence did not exist as described, the applicant never lived in Houston, and the supporting documents were fabricated.The United States charged the applicant with disaster relief fraud and wire fraud in the United States District Court for the Southern District of Texas. During trial, the government revealed late disclosures of two items: civil recoupment letters sent to the defendant in 2020 and an email to a third-party contractor who had supposedly inspected the property. The defense argued these late disclosures violated the government's obligations under Brady v. Maryland. The district court ultimately dismissed the indictment without prejudice, citing its supervisory powers and referencing concerns over discovery violations in this and other recent cases before it, despite finding no intentional misconduct by prosecutors.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed whether the district court erred in dismissing the indictment. The appellate court held there was no Brady violation because the defense failed to show prejudice from the late-disclosed evidence, and the information could have been obtained through reasonable diligence. The court further found that, even assuming a Rule 16 violation, the district court had not properly considered the required factors or imposed the least severe sanction. The Fifth Circuit concluded that the district court abused its discretion in dismissing the indictment and therefore reversed the dismissal order, remanding with instructions to reinstate the indictment. View "USA v. Kuyoro" on Justia Law

Rami Mhana operated businesses that purchased fraudulently obtained Apple iPhones and other electronics at below-market prices, paying in cash and often shipping these goods overseas in bulk. His suppliers included individuals who acquired electronics using stolen personal information to make purchases from major retailers and wireless carriers. Mhana did not verify his suppliers’ identities or the legitimacy of the goods, nor did he provide receipts. He also paid third-party services to unlock phones, enabling their use on any network. The government’s investigation began after a ruptured overseas shipment revealed the scheme, ultimately leading to the discovery of thousands of fraudulent transactions.A federal grand jury in the United States District Court for the Western District of North Carolina indicted Mhana on multiple counts, including transportation of stolen goods, conspiracy, and money laundering. Following a six-day trial, the jury convicted him on all charges. The indictment included a forfeiture notice, and the jury found a nexus between certain property and Mhana’s crimes. The district court initially granted a preliminary order of forfeiture but, at sentencing, declined to enter a final forfeiture judgment, citing concerns about double payment with restitution. The district court entered final judgment, prompting Mhana to appeal his convictions and the government to cross-appeal the forfeiture ruling.The United States Court of Appeals for the Fourth Circuit reviewed the case. It affirmed Mhana’s convictions, finding no reversible error in the district court’s evidentiary rulings, and determined that any assumed errors were harmless given the overwhelming evidence of guilt. However, the appellate court reversed the district court’s denial of forfeiture, holding that forfeiture is mandatory under federal law when the statutory prerequisites are satisfied, even if restitution is also imposed, and remanded the case for entry of a forfeiture judgment. View "US v. Mhana" on Justia Law

A longtime Speaker of the Illinois House of Representatives was prosecuted in federal court for engaging in extensive bribery schemes. The first involved a major utility company, Commonwealth Edison (ComEd), which, facing financial difficulties, funneled more than $3 million to the defendant’s political associates through intermediaries and sham contracts in exchange for the defendant’s legislative support of ComEd’s agenda over several years. The government presented evidence that these payments resulted in concrete legislative actions by the defendant that benefitted ComEd, including support for specific bills and regulatory changes. The second scheme involved the defendant’s agreement to recommend a Chicago alderman for a state board appointment in exchange for business referrals and benefits to the defendant’s family.Following a lengthy trial in the United States District Court for the Northern District of Illinois, the jury convicted the defendant on several counts, including conspiracy, federal-program bribery, honest-services wire fraud, and Travel Act violations. The jury acquitted him on some counts and was deadlocked on others. The district court denied the defendant’s motions for acquittal and for a new trial, then imposed a sentence of imprisonment and a substantial fine.On appeal to the United States Court of Appeals for the Seventh Circuit, the defendant challenged the sufficiency of the evidence and the adequacy of the jury instructions. The Court of Appeals held that sufficient evidence supported each conviction and found no prejudicial error in the jury instructions, including those related to the definition of “official act,” “corruptly,” and the intent elements of bribery. The court also concluded that any potential instructional error regarding state law bribery under the Travel Act was harmless beyond a reasonable doubt. The convictions and sentence were affirmed. View "USA v. Madigan" on Justia Law