Justia White Collar Crime Opinion Summaries

The Fourth Circuit affirmed defendant's conviction and sentence for one count of bank fraud conspiracy and two counts of aggravated identity theft. The court held that the evidence was sufficient to convict defendant of bank fraud conspiracy; the district court did not err in failing to conduct an in camera review to determine whether material required disclosure under the Jencks Act, 18 U.S.C. 3500(b), or pursuant to Brady v. Maryland, 373 U.S. 83 (1963); the district court did not err by declining to provide defendant's requested jury instruction on accomplice testimony, and by providing the jury with a written copy of the jury instruction on aiding and abetting liability; the district court did not erroneously apply a two-level sentencing enhancement for obstruction of justice, a ten-level sentencing enhancement based on the amount of loss, a two-level sentencing enhancement based on use of sophisticated means, a three-level sentencing enhancement based on his role in the offense as a manager or supervisor; and the district court did not abuse its discretion by requiring part of defendant's sentences to run consecutively. View "United States v. Savage" on Justia Law

The Eleventh Circuit affirmed Defendant Skillern and Nelson's convictions for mail fraud, wire fraud, and associated conspiracies. Defendants' convictions stemmed from their efforts to peddle non-existent gold to the public through their company, Own Gold LLC. In this case, Skillern alleged that the district court deprived him of his Sixth Amendment right to the assistance of counsel when, just before an overnight recess that occurred while Skillern was on the stand, the district court granted his lawyer's request to speak to him "about matters other than his testimony." The court held that the district court did not commit constitutional error in light of the court's en banc decision in Crutchfield v. Wainwright, 803 F.2d 1103 (11th Cir. 1986), because the record did not reflect that Skillern (or his lawyer) actually wanted or planned to discuss his testimony during the recess. The court rejected defendants' remaining contentions. View "United States v. Nelson" on Justia Law

Adrian established Red Brick Properties, to purchase, rehabilitate, and resell homes. Adrian's wife, Daniela, the only employee with a real estate license, served as office manager. They sought buyers who did not have good enough credit or a down payment and assisted them in applying for mortgage loans. In 2007-2009, Red Brick sold 45 houses, providing the down payment for each sale; the loan applications falsely stated that the buyers were using their own money. After closing, Red Brick provided the buyers with additional money, to ensure that they could make at least two payments before defaulting. Bank of America which provided the loans for 32 sales, all processed by one loan officer, opened an investigation. A jury convicted Adrian and Daniela of wire fraud, 18 U.S.C. 1343 and conspiracy to commit wire fraud, 18 U.S.C. 1349. Following a remand, the PSR recommended a total loss amount of $1,835,861; the court sentenced Adrian to 36 months’ imprisonment, Daniela to 21 months’ (both sentences were below the Guidelines range), and imposed a $30,000 fine on each. The Seventh Circuit affirmed, rejecting a challenge to the intended loss calculation under U.S.S.G. 2B1.1, and the decision to deny Daniela a minor-role reduction under U.S.S.G. 3B1.2. Bank of America’s losses qualified as an “intended loss” regardless of its level of complicity. View "United States v. Tartareanu" on Justia Law

Armenta worked at Passages as a certified nursing assistant and later as a regional director of certified nursing assistants. Passages billed its services to Medicare. Medicare paid $180 per patient per day for routine services but up to $700 for general inpatient services (GIP). Passages began paying directors based on the number of patients on GIP. The number of patients on GIP significantly increased because directors instructed nurses and nursing assistants to place patients who did not need that level of care on GIP. Passages received an audit request from a Medicare contractor. In response, Armenta and other Passages employees entered false information consistent with GIP care and billing into patient files, then submitted the altered files. Passages employees, including Armenta, were trained on the requirements for placing a patient on GIP. Armenta told the nurses to disregard the training. Armenta and others were charged with health care fraud. Only Armenta proceeded to trial. With a two-level enhancement for obstruction of justice based on lying on the stand and altering records, her Guidelines imprisonment range was 63-78 months.The Seventh Circuit affirmed her conviction and sentence of 20 months’ imprisonment plus $1.67 million in restitution. Although no government witness identified Armenta in court, the defense did not argue that the Armenta in the courtroom was not the same Armenta involved in the fraud. View "United States v. Armenta" on Justia Law

Miller obtained identifying information for several individuals without their knowledge or consent, which he used to open credit card accounts; he opened UPS mailboxes under the victims’ names to receive the cards, which he used to withdraw cash from ATMs. Miller also used personal identifying information to submit 600 fraudulent claims and obtain unemployment insurance benefits from the Texas Workforce Commission. Miller was charged with both schemes. After releasing him on bond, the court discovered Miller stole $13,750 from the correctional facility where he was detained. Miller fled to and was later found, in the Dominican Republic. Miller eventually pleaded guilty to mail fraud affecting a financial institution, 18 U.S.C. 1341, and aggravated identity theft, 18 U.S.C. 1028A(a)(1). The Seventh Circuit affirmed in part, rejecting arguments that the indictment failed to specify proper means of identification of the victims and that the court improperly applied two points to his criminal history calculation for committing the charged crimes while under a criminal justice sentence. Miller possessed over 200 means of identification in a single notebook, used to carry out a common scheme and can only be convicted of one violation each of sections 1028(a)(7) and 1028A(a)(1), which criminalize the knowing possession of “a means of identification of another person” View "United States v. Miller" on Justia Law

The First Circuit affirmed Defendant’s convictions for federal program bribery, lying to a federal agent, and obstructing justice. The court held that, contrary to Defendant’s arguments on appeal, (1) the district court’s jury instructions did not effect a constructive amendment of the indictment on the bribery count; (2) the erroneous inclusion of a unanimity instruction in the jury charge on the particular benefits included within the “stream of benefits” alleged by the government on the bribery count did not prejudice Defendant; and (3) the court did not err in admitting evidence of prior bad acts and adequately instructed the jury about the testimony of immunized cooperating witnesses. View "United States v. Lopez-Cotto" on Justia Law

The First Circuit affirmed Defendant’s convictions for federal program bribery, lying to a federal agent, and obstructing justice. The court held that, contrary to Defendant’s arguments on appeal, (1) the district court’s jury instructions did not effect a constructive amendment of the indictment on the bribery count; (2) the erroneous inclusion of a unanimity instruction in the jury charge on the particular benefits included within the “stream of benefits” alleged by the government on the bribery count did not prejudice Defendant; and (3) the court did not err in admitting evidence of prior bad acts and adequately instructed the jury about the testimony of immunized cooperating witnesses. View "United States v. Lopez-Cotto" on Justia Law

Westine completed a 235-month sentence for securities fraud, and, within months, began offering investments in oil wells. Prospective investors were promised their “[f]irst monthly check within 90 days.” Investors never received royalties; they complained to the Kentucky Department of Financial Institutions, which concluded that the companies were selling unlawful securities and obtained a restraining order. Westine and Ramer, his partner, began winding down the companies and transitioning to new companies that collected over $2 million from 138 investors, who never received checks. Ramer oversaw call centers, developed a promotional video that boasted a fictional production capacity of 75 barrels per day, and organized a trip, during which investors were introduced to another co-conspirator, Cornell, who provided a tour of his oil facility, to create an appearance of legitimacy. Defendants began to shift operations to a new company, and, in less than two months, collected $242,233 from 12 investors. Defendants were charged with 29 counts of mail fraud, 18 U.S.C. 1341; conspiracy to commit money laundering, 18 U.S.C. 1956(h); and securities fraud, 15 U.S.C. 78j(b). A jury found each Defendant guilty. The court sentenced Westine to 480 months’ and Ramer to 156 months’ imprisonment. The Seventh Circuit affirmed, upholding the admission of “prior acts” evidence and rejecting various hearsay challenges. Given the evidence against the Defendants, later-discovered evidence that Cornell was running a side deal is insufficient to warrant remand. View "United States v. Ramer" on Justia Law

Michael, a licensed pharmacist at Chapmanville's Aracoma Pharmacy, separately co-owns another West Virginia pharmacy and one in Pennsylvania. The government suspected that Michael used the pharmacies to distribute on-demand prescription drugs, worth more than $4 million, over the Internet. A grand jury returned a multi-count indictment. Count 7 charged Michael with fraudulently submitting a claim for payment to Humana for dispensing medication that was never dispensed (18 U.S.C. 1347). Count 8 charged him with committing aggravated identity theft by using the “identifying information” of a doctor and a patient “in relation to the [health care fraud] offense” (18 U.S.C. 1028A(a)(1), (c)(11)). Michael had submitted a claim to Humana indicating that A.S. (doctor) had prescribed Lovaza for P.R., including the doctor’s National Provider Identifier and the patient’s name and birth date. A.S. was not P.R.’s doctor and did not issue the prescription. Section 1028A requires a person to “assume the identity” of someone else; the district court held that the statute covered only “impersonation,” and dismissed Count 8. The Sixth Circuit reversed. To “use” a means of identification is to “convert to one’s service” or “employ” the means of identification. Michael used A.S. and P.R.’s identifying information to fashion a fraudulent submission, making the misuse of these means of identification “during and in relation to” healthcare fraud. View "United States v. Michael" on Justia Law

Michael, a licensed pharmacist at Chapmanville's Aracoma Pharmacy, separately co-owns another West Virginia pharmacy and one in Pennsylvania. The government suspected that Michael used the pharmacies to distribute on-demand prescription drugs, worth more than $4 million, over the Internet. A grand jury returned a multi-count indictment. Count 7 charged Michael with fraudulently submitting a claim for payment to Humana for dispensing medication that was never dispensed (18 U.S.C. 1347). Count 8 charged him with committing aggravated identity theft by using the “identifying information” of a doctor and a patient “in relation to the [health care fraud] offense” (18 U.S.C. 1028A(a)(1), (c)(11)). Michael had submitted a claim to Humana indicating that A.S. (doctor) had prescribed Lovaza for P.R., including the doctor’s National Provider Identifier and the patient’s name and birth date. A.S. was not P.R.’s doctor and did not issue the prescription. Section 1028A requires a person to “assume the identity” of someone else; the district court held that the statute covered only “impersonation,” and dismissed Count 8. The Sixth Circuit reversed. To “use” a means of identification is to “convert to one’s service” or “employ” the means of identification. Michael used A.S. and P.R.’s identifying information to fashion a fraudulent submission, making the misuse of these means of identification “during and in relation to” healthcare fraud. View "United States v. Michael" on Justia Law