Justia White Collar Crime Opinion Summaries

The case involves fourteen members of the Bomb Squad, a street gang, who were charged with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), among other crimes. One member pleaded guilty, while the remaining defendants were convicted by a jury. The defendants appealed their convictions, arguing that the district judge violated Batson v. Kentucky when selecting the jury. The court of appeals retained jurisdiction of the appeal and ordered a limited remand to allow the district court to make supplemental findings on this issue. The court of appeals found no reversible error in the remaining arguments raised by the defendants and affirmed their convictions.The Bomb Squad was a street gang that used violence to protect its reputation, territory, and drug sales. The gang members were charged with numerous crimes, including murder, attempted murder, drug trafficking, and multiple robberies. The defendants argued that the district judge violated Batson v. Kentucky when selecting the jury, which prohibits a prosecutor from using a peremptory challenge to strike a prospective juror because of their race.The court of appeals ordered a limited remand to allow the district court to make supplemental findings on the Batson issue. The court of appeals found no reversible error in the remaining arguments raised by the defendants and affirmed their convictions. The court of appeals also noted that if the district court orders a new trial, much of its opinion would become moot. However, it addressed the remaining issues raised by the defendants in the interest of judicial economy. View "USA v. Williams" on Justia Law

Plaintiff-Appellant appealed from a district court order granting summary judgment to Defendants-Appellees on his claim under the Racketeer Influenced and Corrupt Organizations Act (“RICO”). On appeal, Appellant argued that the district court erroneously held that he lacks RICO standing to sue for his lost earnings because those losses flowed from, or were derivative of, an antecedent personal injury.   The Second Circuit vacated and remanded. The court explained that RICO’s civil-action provision, 18 U.S.C. Section 1964(c), authorizes a plaintiff to sue for injuries to “business or property.” While that language implies that a plaintiff cannot sue for personal injuries, that negative implication does not bar a plaintiff from suing for injuries to business or property simply because a personal injury was antecedent to those injuries. The court explained that it is simply wrong to suggest that the antecedent-personal-injury bar is necessary to ensure “genuine limitations” in Section 1964(c), or to give restrictive significance to Congress’s implicit intent to exclude some class of injuries by the phrase “business or property”’ when it enacted RICO. View "Horn v. Medical Marijuana, Inc." on Justia Law

Hansen promised hundreds of noncitizens a path to U.S. citizenship through “adult adoption,” earning nearly $2 million from his fraudulent scheme. The government charged Hansen under 8 U.S.C. 1324(a)(1)(A)(iv), which forbids “encourag[ing] or induc[ing] an alien to come to, enter, or reside in the United States, knowing or in reckless disregard of the fact that such [activity] is or will be in violation of law.” The Ninth Circuit found Clause (iv) unconstitutionally overbroad, in violation of the First Amendment.The Supreme Court reversed. Because 1324(a)(1)(A)(iv) forbids only the purposeful solicitation and facilitation of specific acts known to violate federal law, the clause is not unconstitutionally overbroad. A statute is facially invalid under the overbreadth doctrine if it “prohibits a substantial amount of protected speech” relative to its “plainly legitimate sweep.” Here, Congress used “encourage” and “induce” as terms of art referring to criminal solicitation and facilitation (capturing only a narrow band of speech) not as those terms are used in ordinary conversation. Criminal solicitation is the intentional encouragement of an unlawful act, and facilitation—i.e., aiding and abetting—is the provision of assistance to a wrongdoer with the intent to further an offense’s commission. Neither requires lending physical aid; both require an intent to bring about a particular unlawful act. The context of these words and statutory history indicate that Congress intended to refer to their well-established legal meanings. Section 1324(a)(1)(A)(iv) reaches no further than the purposeful solicitation and facilitation of specific acts known to violate federal law and does not “prohibi[t] a substantial amount of protected speech” relative to its “plainly legitimate sweep.” View "United States v. Hansen" on Justia Law

The Haistens sold discounted animal pesticides and drugs online from their South Carolina home. They operated in violation of multiple FDA and EPA regulations. They sold counterfeit DVDs of movies and television shows that they obtained from China. The Haistens ignored cease-and-desist letters from state regulators and animal pesticides companies. Department of Homeland Security agents began making undercover purchases from the Haistens. Customs and Border Protection (CBP) seized shipments of counterfeit DVDs. Agents then searched the Haistens’ home, which revealed unapproved animal pesticides and drugs, counterfeit DVDs, and business records. In the ensuing prosecution, Count 14 charged the Haistens with trafficking counterfeit DVDs that were seized by CBP officers in Cincinnati. Count 15 charged them with trafficking counterfeit DVDs, that were seized at their home. Defense counsel did not request a jury instruction on improper venue or move for acquittal on Counts 14 or 15 for lack of proper venue in the Eastern District of Pennsylvania. The Haistens appealed, challenging an evidentiary ruling and a statement the government made during its summation. The Third Circuit affirmed.The Haistens then sought relief under 28 U.S.C. 2255, arguing that their trial counsel was ineffective for failing to challenge venue on Counts 14 and 15. The Third Circuit remanded the denial of that motion for the district court to conduct an evidentiary hearing on whether their counsel had a strategic reason for not raising a defense based on improper venue. View "United States v. Haisten" on Justia Law

Zheng became a permanent U.S. resident in 2004. He was a professor at the University of Southern California, Pennsylvania State University, and The Ohio State University and performed research under National Institute of Health (NIH) grants. Zheng had financial and information-sharing ties to Chinese organizations and received grants from the National Natural Science Foundation of China. Including that information on NIH applications would have derailed Zheng’s funding prospects, so Zheng clouded his ties to China. By 2019, the FBI began investigating Zheng. Zheng left for China but federal agents apprehended him in Anchorage.Zheng pleaded guilty to making false statements, 18 U.S.C. 1001(a)(3). Rejecting an argument that the research Zheng completed offset the amount of money lost, the district court calculated a Guidelines range of 37-46 months and sentenced Zheng to 37 months. On appeal, Zheng argued that his counsel was ineffective by not seeking a downward variance based on Zheng’s immigration status as a deportable alien, which would have an impact on the execution of his sentence. The Sixth Circuit dismissed, noting that the record was inadequate to establish ineffective assistance for the first time on direct appeal. Nothing in the record shows counsel’s reasons for making certain strategic decisions or why he advanced one argument over another. View "United States v. Zheng" on Justia Law

The First Circuit affirmed Appellant's plea of guilty to one count of investment adviser fraud, four counts of wire fraud, and one count of aggravated identity theft, holding that there was no prejudicial error in the proceedings below.On appeal, Appellant argued that her plea was not knowing and voluntary, that the evidence was insufficient to convict her of wire fraud and aggravated identity theft, that several sentencing enhancements were improperly applied, and that her counsel was ineffective. The First Circuit affirmed, holding (1) there was no error in the district court's acceptance of Appellant's guilty plea; (2) Appellant's conduct clearly satisfied the statutory requirements for wire fraud and aggravated identity theft; and (3) Appellant's challenges to several aspects of her sentence were unavailing. View "United States v. Kitts" on Justia Law

After an explosion at Massey’s West Virginia coal mine killed 29 miners, Blankenship, then Massey’s Chairman of the Board and CEO, was convicted of conspiring to willfully violate federal mine safety and health standards, 30 U.S.C. 820(d) and 18 U.S.C. 371. The evidence indicated that Blankenship had willfully failed to address numerous notices of mine safety violations that Massey had received, favoring production and profits over safety. Following the trial and in response to Blankenship’s ongoing requests, the government produced documents to Blankenship that it had not produced before trial and that it should have produced under applicable Department of Justice policies. The suppressed documents fell broadly into two categories: memoranda of interviews conducted of seven Massey employees and internal emails and documents of the Mine Safety and Health Administration (MSHA) showing, among other things, some MSHA employees’ hostility to Massey and Blankenship.The Fourth Circuit affirmed the denial of Blankenship’s 28 U.S.C. 2255 motion to vacate his conviction. While the documents were improperly suppressed, they were not material in that there was not a reasonable probability that they would have produced a different result had they been disclosed before trial. The verdict that Blankenship conspired to willfully violate mandatory mine standards was supported by ample evidence. View "United States v. Blankenship" on Justia Law

The First Circuit affirmed Defendants' convictions connected with the murder of Steven DiSarro, holding that Defendants were not entitled to relief on their allegations of error.Defendants, Francis Salemme and Paul Weadick, were convicted of the 1993 murder of DiSarro. At the time of the murder, Salemme was the boss of a criminal organization known as the New England La Cosa Nostra. Defendants murdered DiSarro to prevent him from talking with federal agents about his activities with Salemme, Weadick and Salemme's son. On appeal, Defendants challenged the trial court's admission of a significant amount of evidence concerning the prior criminal activities of Salemme and several witnesses. The First Circuit affirmed, holding that the district court did not err in admitting the evidence. View "United States v. Weadick" on Justia Law

A felony complaint alleged that on seven different dates in 2014, Martinez committed a felony under Insurance Code section 1814 by entering into an agreement and having an understanding with a person incarcerated in jail, to inform and notify Martinez, a bail licensee, of the fact of an arrest in violation of California Code of Regulations, title 10, section 2076. Martinez was associated with Luna Bail Bonds.The court of appeal reversed her subsequent conviction, finding the regulation facially invalid. Section 2076 prohibits bail licensees from entering, indirectly or directly, any arrangement or understanding with specified types of people— including a “person incarcerated in a jail”—“or with any other persons” to inform or notify any bail licensee, directly or indirectly, of information pertaining to (1) an existing criminal complaint, (2) a prior, impending, or contemplated arrest, or (3) the persons involved therein, which impliedly includes arrestees and named criminals. The section is not unconstitutionally vague but is a content-based regulation, which unduly suppresses protected speech and fails to survive even intermediate judicial scrutiny. While section 2076 might indirectly deter unlawful solicitation of arrestees, an indirect effect is not enough to survive intermediate scrutiny. View "People v. Martinez" on Justia Law

In 1998-2010, Dimora served as one of three Cuyahoga County Commissioners. An FBI investigation revealed that Dimora had received over $250,000 in gifts from individuals with business before the County, including home renovations, trips to Las Vegas, and encounters with prostitutes. Dimora had used his position to help with the awarding of County contracts, hiring, the results of at least one County election, and civil litigation outcomes. Dimora’s “influence” ranged from casting formal votes as Commissioner to pressuring other officials.Dimora was charged with Hobbs Act offenses, bribery concerning programs receiving federal funds, making false statements on tax returns, conspiracy to commit mail fraud and honest services mail fraud, conspiracy to commit bribery concerning programs receiving federal funds, conspiracy to commit wire fraud and honest services wire fraud, RICO conspiracy, mail fraud, conspiracy to obstruct justice and obstructing a federal investigation. A jury convicted Dimora on 33 counts. The Sixth Circuit upheld the jury instructions defining “official acts” as having “fairly trace[d] the line between permissible gifts and impermissible bribes.” A ruling that state ethics reports were inadmissible hearsay was harmless in light of “overwhelming evidence.”In its 2016 “McDonnell” decision, the Supreme Court gave a narrow construction to a key element included within several of Dimora’s offenses. The term “official acts” does not include “setting up a meeting, calling another public official, or hosting an event.” Official acts are limited to “formal exercise[s] of governmental power.” Dimora petitioned to vacate his convictions under 28 U.S.C. 2255. The Sixth Circuit vacated a denial of relief. The court declined to decide whether the instructional error was harmless with respect to most of the counts or whether the “cumulative effect” of instructional and evidentiary errors entitles Dimora to relief. View "Dimora v. United States" on Justia Law