Justia White Collar Crime Opinion Summaries

Randy Torres, Walston Owen, and Charles Ventura were involved in a street gang known as the Rollin’ 30s Crips. Following a jury trial, they were convicted of various offenses, including racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Owen and Ventura were also convicted of additional firearms and assault offenses. Torres and Owen received sentences of 475 months’ imprisonment, while Ventura was sentenced to 288 months.The United States District Court for the Southern District of New York oversaw the trial. The defendants raised several arguments on appeal, including insufficient evidence to support their convictions, errors in jury instructions, improper admission of co-conspirator statements, and issues related to jury impartiality. They also challenged the district court’s refusal to grant a downward departure in Ventura’s sentencing.The United States Court of Appeals for the Second Circuit reviewed the case. The court found that there was sufficient evidence to support the convictions, including the special sentencing factors related to the murders of Victor Chaffa and Nestor Suazo. The court also held that the district court did not err in its jury instructions or in its handling of the juror impartiality issues. Additionally, the court found no abuse of discretion in the admission of co-conspirator statements.The Second Circuit dismissed Ventura’s claim regarding the district court’s refusal to grant a downward departure for lack of jurisdiction and affirmed the judgments of the district court in all other respects. The court concluded that the defendants’ arguments were without merit and upheld their convictions and sentences. View "United States v. Torres" on Justia Law

Felix Jacobo Salomon-Guillen, a native of El Salvador, entered the United States in 2009 on an O-3 visa as the spouse of Lucia Parker Salomon, a recording artist who later became a naturalized citizen. Salomon-Guillen became a permanent resident and managed his wife's music career. In 2013, he began working as a marketing director for a book publisher and engaged in a fraudulent scheme that cost the company $1.4 million. He was indicted for wire fraud, pleaded guilty, and was sentenced to 18 months in prison.The government sought to remove Salomon-Guillen from the country due to his aggravated felony conviction. He conceded removability and applied for adjustment of status and an inadmissibility waiver. The immigration judge denied his applications, finding that he failed to demonstrate that his removal would cause "extreme hardship" to his wife or mother, both U.S. citizens. The judge also concluded that Salomon-Guillen did not merit a waiver or adjustment of status as a matter of discretion due to the severity of his fraud offense.The Board of Immigration Appeals (BIA) affirmed the immigration judge's decision. The BIA, with Temporary Appellate Immigration Judge Denise G. Brown participating, found that Salomon-Guillen failed to show that his wife would suffer extreme hardship if she accompanied him to El Salvador. The BIA also agreed that he did not merit a waiver or adjustment of status as a matter of discretion.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court held that the regulation allowing temporary Board members to serve six-month terms did not preclude their reappointment for additional terms. The court also found that it lacked jurisdiction to review the BIA's discretionary denial of the inadmissibility waiver. Consequently, the petition for review was denied in part and dismissed in part. View "Saloman-Guillen v. Garland" on Justia Law

The case involves Elvis Eghosa Ogiekpolor, who was convicted of conspiring to commit money laundering and 15 counts of money laundering. The charges stemmed from business email compromise schemes and online romance scams, where victims were defrauded into sending money. Ogiekpolor and his co-conspirators registered sham corporations, opened bank accounts in their names, and deposited the fraudulently obtained money into these accounts. They then laundered approximately six million dollars through these accounts.In the lower court, the United States District Court for the Northern District of Georgia handled the case. Ogiekpolor was initially charged via a criminal complaint in August 2020 and was detained pending trial. The government filed an information in November 2020, and Ogiekpolor waived indictment. However, after he denied committing the fraud at a change of plea hearing, the court did not proceed with the plea. A grand jury returned an indictment in January 2021, and a superseding indictment in February 2022 added more charges. Ogiekpolor filed multiple motions to dismiss based on Speedy Trial Act and Sixth Amendment violations, which the district court denied. The trial began in May 2022, and the jury convicted him on all counts.The United States Court of Appeals for the Eleventh Circuit reviewed the case. Ogiekpolor appealed his convictions, arguing violations of the Sixth Amendment and the Speedy Trial Act. The Eleventh Circuit affirmed the district court’s judgment, holding that the delays in the case did not violate the Sixth Amendment or the Speedy Trial Act. The court found that the delays were justified due to the complexity of the case, the need for adequate preparation, and the impact of the COVID-19 pandemic. The court also concluded that Ogiekpolor did not suffer actual prejudice from the delays. View "USA v. Ogiekpolor" on Justia Law

Keith Todd Ashley, a licensed financial advisor, was charged and convicted on 17 counts of violating federal law, including mail and wire fraud, Hobbs Act robbery, and bank theft. He operated a Ponzi scheme and allegedly murdered one of his clients to steal funds from the client’s bank account and benefit from the client’s life insurance proceeds. The district court sentenced Ashley to 240 months’ imprisonment for each of 15 counts of wire and mail fraud and imposed life sentences for his convictions of Hobbs Act robbery and bank theft.In the United States District Court for the Eastern District of Texas, Ashley was found guilty on all counts presented. He filed motions for continuance and severance, which were denied by the district court. The jury found Ashley guilty on all counts, and the district court sentenced him accordingly. Ashley then appealed, challenging the sufficiency of the evidence for most of his convictions, the reasonableness of his sentence, and the denial of his motions for continuance and severance.The United States Court of Appeals for the Fifth Circuit reviewed the case. The government conceded that there was insufficient evidence to convict Ashley of five counts and that the life-sentence enhancement for his conviction of bank theft did not apply. The Fifth Circuit agreed, affirming some of Ashley’s convictions, vacating others, and remanding the case for resentencing and further proceedings. Specifically, the court affirmed Ashley’s convictions on Counts 1, 3, 14, and 19, vacated his convictions on Counts 2, 4, 5, 6, 9, 10, 11, 12, 13, 15, 16, and 18, and remanded for resentencing. The court also addressed Ashley’s challenges to the procedural and substantive reasonableness of his sentence and the cumulative error doctrine but found no reversible error in those respects. View "United States v. Ashley" on Justia Law

Sekhar Rao was involved in a scheme to defraud TRICARE, a federal health benefit plan, by ordering medically unnecessary toxicology and DNA cancer screening tests. These tests were billed to TRICARE through a shell company, ADAR Group, LLC, which set up fraudulent testing sites. Rao, a physician, was hired to sign off on these tests without reviewing patient medical information or meeting the patients. He was paid per test ordered. The scheme involved using a signature stamp of Rao’s signature to sign requisition forms, which Rao allegedly knew about and consented to.In the United States District Court for the Northern District of Texas, Rao was acquitted of conspiracy to commit health care fraud but was convicted of two counts of substantive health care fraud related to specific fraudulent claims submitted to TRICARE. The district court sentenced him to 48 months of imprisonment, followed by three years of supervised release, and calculated the loss amount under the United States Sentencing Guidelines based on the intended loss.The United States Court of Appeals for the Fifth Circuit reviewed the case. Rao raised three issues on appeal: the sufficiency of the evidence for his convictions, the exclusion of testimony regarding statements made to him by the scheme’s leader about legal vetting, and the calculation of the loss amount under the Sentencing Guidelines. The Fifth Circuit found no reversible error in the district court’s decisions. The court held that there was sufficient evidence for a reasonable jury to conclude that Rao caused the submission of the fraudulent claims and that he knew about and authorized the use of his signature stamp. The court also held that the district court did not plainly err in excluding the testimony about legal vetting and did not err in calculating the intended loss amount. The Fifth Circuit affirmed Rao’s convictions and sentence. View "United States v. Rao" on Justia Law

Joseph Anthony Borino, as part of a plea agreement, pleaded guilty to misprision of a felony (wire fraud) on July 8, 2021. He was sentenced to one year and one day of imprisonment on November 1, 2022. On March 30, 2023, the district court ordered restitution of $21,223,036.37 under the Mandatory Victims Restitution Act (MVRA), to be paid jointly and severally with Denis Joachim, Borino’s employer and co-conspirator.The district court proceedings began with the indictment of Denis and Donna Joachim in August 2018, followed by Borino’s separate indictment in November 2019. Borino was charged with conspiracy to defraud the IRS, making false statements, and wire fraud. He later pleaded guilty to misprision of a felony in June 2021. The district court adopted the Pre-Sentence Investigation Report (PSR) which attributed the entire loss of $25,543,340.78 to Borino, and scheduled a separate restitution hearing. At the restitution hearing, the court calculated the restitution amount based on the fees paid by the victims during the period of Borino’s offense, minus the claims paid by TTFG.The United States Court of Appeals for the Fifth Circuit reviewed Borino’s appeal, where he challenged the restitution order on three grounds: the applicability of the MVRA to his offense, the proof of actual pecuniary loss to the victims, and the causation of the losses. The Fifth Circuit affirmed the district court’s order, holding that the MVRA applied to Borino’s misprision offense because it involved concealment of wire fraud, a crime committed by fraud or deceit. The court found that the government had sufficiently proven the victims’ actual losses and that Borino’s continuous concealment of the fraud directly and proximately caused the victims’ losses. The court concluded that the district court did not err in ordering restitution of $21,223,036.37. View "United States v. Borino" on Justia Law

Ahmad Abouammo, a former employee of Twitter, was accused of providing confidential information about dissident Saudi Twitter users to Bader Binasaker, an associate of Saudi Crown Prince Mohammed bin Salman. In exchange, Abouammo received a luxury wristwatch and substantial payments. A jury convicted Abouammo of acting as an unregistered agent of a foreign government, conspiracy to commit wire and honest services fraud, wire and honest services fraud, international money laundering, and falsification of records to obstruct a federal investigation.The United States District Court for the Northern District of California presided over the initial trial. Abouammo was found guilty on multiple counts, including acting as an unregistered agent and falsifying records. He was sentenced to 42 months in prison, three years of supervised release, and forfeiture of $242,000. Abouammo appealed his convictions and sentence, arguing insufficient evidence, improper venue, and that some charges were time-barred.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court affirmed Abouammo’s convictions, holding that sufficient evidence supported his conviction under 18 U.S.C. § 951 for acting as an unregistered agent of a foreign government. The court found that Abouammo acted under the direction and control of the Saudi government, regardless of whether Binasaker was a foreign "official." The court also rejected Abouammo’s statute of limitations argument, holding that the superseding indictment was timely under 18 U.S.C. § 3288. Additionally, the court held that venue for the falsification of records charge was proper in the Northern District of California, where the obstructed federal investigation was taking place.The Ninth Circuit vacated Abouammo’s sentence and remanded for resentencing, but affirmed his convictions on all counts. View "USA V. ABOUAMMO" on Justia Law

Andrew Davis was convicted of conspiracy to distribute and possess with intent to distribute marijuana, possession with intent to distribute marijuana, possession of firearms in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. Davis trafficked large quantities of marijuana in Bridgeport, Connecticut, using a method involving shipping marijuana from California via FedEx. Upon his arrest, he was found with over 136 pounds of marijuana, numerous handguns, and approximately $412,000 in cash. A co-conspirator cooperated with the government, leading to Davis's conviction.The United States District Court for the District of Connecticut sentenced Davis to 295 months’ imprisonment. Davis appealed, arguing that the evidence was insufficient to support his conviction for conspiracy to commit money laundering. He also raised ten additional arguments in pro se supplemental briefs, including claims of ineffective assistance of counsel and challenges to the sufficiency of the evidence for his other convictions.The United States Court of Appeals for the Second Circuit reviewed the case. The court concluded that the evidence at trial was sufficient to support Davis’s conviction for conspiracy to commit money laundering. The court found that the government provided ample circumstantial evidence linking the cash used in financial transactions to Davis's drug trafficking operations. The court also determined that Davis's pro se arguments either lacked merit, were forfeited, or were premature. Consequently, the Second Circuit affirmed the district court’s judgment. View "United States v. Davis" on Justia Law

Rose-Marie Nsahlai was convicted for her involvement in a scheme to fraudulently obtain Paycheck Protection Program (PPP) loans. Nsahlai and her husband, Didier Kindambu, applied for two PPP loans using false information and then used the loan proceeds for unauthorized purposes. The fraudulent applications included fabricated payroll documentation created by Nsahlai, which falsely represented that the Papillon companies had substantial payroll expenses. The loans, totaling over $2.5 million, were approved and deposited into their accounts, and the funds were subsequently used for personal expenses, including the purchase of a new residence.The United States District Court for the Eastern District of Virginia convicted Nsahlai on charges of conspiracy to commit bank fraud, bank fraud, and unlawful monetary transactions. Before trial, the district court excluded evidence related to Nsahlai's claims of domestic abuse by Kindambu, ruling it irrelevant and prejudicial. Nsahlai argued that this evidence was necessary to explain her actions and lack of intent to commit fraud. The court allowed her to testify that she felt compelled by her relationship but prohibited specific references to abuse.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court's decisions. The appellate court found no reversible error in the exclusion of the domestic abuse evidence, concluding that it was not relevant to the charges and that any error was harmless given the overwhelming evidence of Nsahlai's guilt. The court also rejected Nsahlai's challenge to the jury instructions, determining that the instructions, when read as a whole, did not mislead the jury or affect her substantial rights. The court held that the instructions properly required the jury to find the elements of the charged offenses beyond a reasonable doubt. Thus, the Fourth Circuit affirmed Nsahlai's convictions. View "US v. Nsahlai" on Justia Law

Joseph Scott Gray, a decorated U.S. Army veteran, was convicted of defrauding the Department of Veterans Affairs (VA) by lying about his health to obtain benefits. After leaving the military in 2003, Gray falsely claimed severe disabilities to receive increased benefits, including "individual unemployability" and "aid and attendance" benefits. His fraudulent activities were exposed when investigators videotaped him performing daily activities without assistance, contradicting his claims of severe disability.The United States District Court for the Western District of Michigan convicted Gray of several fraud-related offenses. The jury found him guilty, and the district court sentenced him to five years in prison and ordered him to pay $264,631 in restitution, covering benefits received from 2004 onward. Gray appealed, challenging the exclusion of an expert witness, the calculation of his criminal history score, the reasonableness of his sentence, and the restitution order.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court upheld the exclusion of Gray's expert witness, Dr. Ennis Berker, as the proposed testimony was deemed irrelevant to the issues at trial. The court also found no procedural error in the calculation of Gray's criminal history score and deemed the five-year sentence substantively reasonable, considering the severity and duration of his fraudulent conduct.However, the court vacated the restitution order, ruling that it should not cover losses before January 2015, as the indictment only charged Gray with a conspiracy beginning in 2015. The case was remanded for recalculation of the restitution amount, limited to the period specified in the indictment. View "United States v. Joseph Gray" on Justia Law