Justia White Collar Crime Opinion Summaries

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 plaintiffs alleged that the defendants marketed fraudulent franchise opportunities to foreign nationals seeking to invest in the United States to obtain residency visas. The complaint included claims under the Racketeer Influenced and Corrupt Organizations Act (RICO) and state-law claims for fraud, breach of contract, and malpractice. The plaintiffs claimed that the defendants misrepresented the nature of the investment opportunities, leading the plaintiffs to believe they were purchasing franchises that would qualify them for E-2 or EB-5 visas. Instead, they received licenses that did not meet visa requirements, resulting in financial losses and visa application issues.The United States District Court for the Southern District of Texas dismissed the case for failure to state a claim. The court found that the plaintiffs did not adequately allege a cognizable enterprise under RICO and failed to meet the heightened pleading standards for fraud under Federal Rule of Civil Procedure 9(b). The district court also denied the plaintiffs leave to amend their complaint, citing undue delay and the plaintiffs' failure to provide a proposed amended complaint or additional facts that would cure the deficiencies.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the plaintiffs failed to plead a RICO enterprise, as the complaint did not provide sufficient factual detail to support the existence of an association-in-fact enterprise. The court also upheld the dismissal of the fraud and fraudulent inducement claims, finding that the plaintiffs did not meet the particularity requirements of Rule 9(b). Additionally, the court found no abuse of discretion in the district court's denial of leave to amend the complaint and the dismissal of claims against certain defendants for failure to effect timely service of process. View "Crosswell v. Rodriguez" on Justia Law

The court case involves defendants Juan Alberto Ortiz-Orellana and Minor Perez-Chach, who were convicted under the Racketeer Influenced and Corrupt Organizations Act (RICO) and the Violent Crimes in Aid of Racketeering statute (VICAR). Ortiz and Perez were part of a gang known as MS-13 and were separately charged with murders related to their involvement in the gang in Maryland. Ortiz was also convicted of VICAR conspiracy to commit murder, discharging a firearm in furtherance of a crime of violence, and murder resulting from the same crime. Perez, on the other hand, was also convicted of being a felon in possession of a firearm and ammunition, and an alien in possession of a firearm and ammunition. Both defendants appealed their convictions and sentences.The United States Court of Appeals for the Fourth Circuit held that the government seizure of historical cell site location information (CSLI) without a warrant did not violate the defendants' Fourth Amendment rights due to the good faith exception. The court also upheld the use of summary exhibits and denied the defendants' claim that their sentences were substantially unreasonable. The court agreed with Ortiz that his firearm convictions must be vacated because the underlying offenses for each VICAR count could not qualify as a "crime of violence" after a recent ruling. The court also rejected Ortiz's claim that his RICO and VICAR convictions violated the Double Jeopardy Clause. As a result, the court affirmed in part, vacated in part, and remanded the case for resentencing on certain counts. View "US v. Ortiz-Orellana" 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

Prasad owned and operated Maremarks, through which he filed petitions seeking H-1B status for nonimmigrant, foreign workers in specialty occupations to come to the U.S. as Maremarks’ employees performing work for Maremarks’ clients. Prasad falsely represented in the H-1B petitions that there were specific, bona fide positions available for the H-1B beneficiaries. Prasad was convicted of 21 counts of visa fraud, 18 U.S.C. 1546(a), and two counts of aggravated identity theft, 18 U.S.C. 1028A(a)(1). The district court ordered forfeiture under 18 U.S.C. 982(a)(6)(A)(ii): $1,193,440.87.The Ninth Circuit affirmed, rejecting Prasad’s argument that he did not “obtain” the entire $1,193,440.87 because he eventually paid portions of the money to the H1B beneficiaries. Prasad possessed the full $1,193,440.87 paid by the end-clients and had control over the money before he paid a percentage of it to employees. Considering the term “proceeds” in the context of the forfeiture statute, the statute’s punitive purpose, and its prior construction of virtually identical criminal forfeiture provisions, the court concluded that the term extends to receipts and is not limited to profit. Although the H-1B beneficiary employees performed legitimate work for end-clients, the portions of the money that Maremarks received for that work and subsequently paid to the beneficiary employees was, nonetheless, “obtained directly or indirectly from” Prasad’s unlawful conduct. View "United States v. Prasad" on Justia Law

In 2012, Rad and others were charged with acquiring penny stocks, “pumping” the prices of those stocks by bombarding investors with misleading spam emails, and then “dumping” their shares at a profit. Rad was convicted of conspiring to commit false header spamming and false domain name spamming under the Controlling the Assault of Non-Solicited Pornography And Marketing Act (CAN-SPAM), 15 U.S.C. 7701(a)(2), which addresses unsolicited commercial email. The PSR recommended raising Rad’s offense level to reflect the losses inflicted on investors, estimating that Rad realized about $2.9 million in “illicit gains” while acknowledging that because “countless victims” purchased stocks, the losses stemming from Rad’s conduct could not “reasonabl[y] be determined.” Rad emphasized the absence of evidence that any person lost anything. Rad was sentenced to 71 months’ imprisonment. The record is silent as to how the court analyzed the victim loss issue. The Third Circuit affirmed. DHS initiated removal proceedings under 8 U.S.C. 1227(a)(2)(A)(iii), which renders an alien removable for any crime that “involves fraud or deceit” “in which the loss to the victim or victims exceeds $10,000.” The IJ and the BIA found Rad removable.The Third Circuit remanded. Rad’s convictions for CAN-SPAM conspiracy necessarily entail deceit under 8 U.S.C. 1101(a)(43)(M)(i). The second element, requiring victim losses over $10,000, however, was not adequately addressed. The court noted that intended losses, not just actual ones, may meet the requirement. View "Rad v. Attorney General United States" on Justia Law

Grayson does business under the name Gire Roofing. Grayson and Edwin Gire were indicted for visa fraud, 18 U.S.C. 1546 and harboring and employing unauthorized aliens, 8 U.S.C. 1324(a)(1)(A)(iii). On paper, Gire had no relationship to Grayson as a corporate entity. He was not a stockholder, officer, or an employee. He managed the roofing (Grayson’s sole business), as he had under the Gire Roofing name for more than 20 years. The corporate papers identified Grayson’s president and sole stockholder as Young, Gire’s girlfriend. Gire, his attorney, and the government all represented to the district court that Gire was Grayson’s president. The court permitted Gire to plead guilty on his and Grayson’s behalf. Joint counsel represented both defendants during a trial that resulted in their convictions and a finding that Grayson’s headquarters was forfeitable. Despite obtaining separate counsel before sentencing, neither Grayson nor Young ever complained about Gire’s or prior counsel’s representations. Neither did Grayson object to the indictment, the plea colloquy, or the finding that Grayson had used its headquarters for harboring unauthorized aliens.The Seventh Circuit affirmed. Although Grayson identified numerous potential errors in the proceedings none are cause for reversal. Grayson has not shown that it was deprived of any right to effective assistance of counsel that it may have had and has not demonstrated that the court plainly erred in accepting the guilty plea. The evidence is sufficient to hold Grayson vicariously liable for Gire’s crimes. View "United States v. Grayson Enterprises, Inc." on Justia Law

Defendant Sara Salcido provided immigration services. Under the Immigration Consultant Act (Act), with certain exceptions, it is illegal for a person to act as an “immigration consultant” (as defined in the Act) unless he or she has complied with a host of consumer protection requirements, such as passing a background check and filing a bond. Defendant failed to comply with these. As a result, defendant was convicted on one count of misdemeanor unlawfully engaging in the business of an immigration consultant. The State argued, however, that each time defendant took money from a client in exchange for providing immigration services, she was committing theft by false pretenses, because she was not a legally qualified immigration consultant under state law. The trial court agreed; thus, it also convicted her on six counts of grand theft, and two counts of petty theft. It dismissed two additional counts of grand theft as time-barred. Defendant was placed on probation for five years. Defendant contended the Act was preempted by federal law. She demurred to the complaint on this ground. The Court of Appeal determined federal law did not preempt the application of the Act to defendant. View "California v. Salcido" on Justia Law

McClure-Potts contacted police about Samarin, who entered the U.S. without inspection from Ukraine. McClure-Potts claimed she was trying to adopt Samarin, who was 19 years old and that Samarin had been “speaking of Hitler against the Jews” and might have stolen a rifle. McClure-Potts provided a birth certificate indicating that Samarin was born in 1992. Police discovered that McClure-Potts had previously filed runaway reports regarding a minor son (Asher) apparently born in 1997; Samarin was posing as Asher and attending high school. The school provided a sworn statement from McClure-Potts that Samarin was born in 1997, with applications for free/reduced lunch and health benefits. Samarin claimed that he had moved in with McClure-Potts, then was told to cut ties with his family and surrender his money and his identification documents. He was forced to do household work. McClure-Potts obtained a Social Security card for "Asher," and used it to procure $7,336 in income tax credits and $13,653.28 in nutritional and health benefits. McClure-Potts was charged with Social Security Fraud, 42 U.S.C. 408(a)(6); Harboring an Illegal Alien, 8 U.S.C. 1324(a)(1)(A)(iii), (a)(2); and Unlawful Conduct Respecting Documents in Furtherance of Forced Labor, 18 U.S.C. 1589, 1590. McClure-Potts pled guilty to the Social Security Fraud and Harboring counts. Based on the amount of loss ($20,989.28) and the court’s refusal to grant an offense level reduction due to the claim that her fraud was committed “other than for profit," she was sentenced to five months. The Third Circuit affirmed. The benefits that McClure-Potts sought and received were “payment” for her harboring Samarin. View "United States v. McClure-Potts" on Justia Law

Indiana’s Bureau of Motor Vehicles will not register or transfer a vehicle title unless the buyer furnishes a Social Security number. For corporations and similar entities, it requires a federal employer identification number (EIN). It is possible to obtain an EIN without having a Social Security number. Aliens whose visas do not allow them to work in the U.S. and aliens who lack authority to be in the U.S. can get an EIN. Defendants established a business that obtained an EIN, registered a limited liability company, and submitted the required paperwork and fees, using clients’ real names and addresses. Clients paid $350, which included fees for the BMV. Defendants were convicted of conspiracy (8 U.S.C. 1324(a)(1)(A)(v)(I)), to violate 8 U.S.C. 1324(a)(1)(A)(iii) and (iv) by shielding unauthorized aliens from detection and encouraging them to reside in the U.S. and conspiracy to commit mail or wire fraud, 18 U.S.C. 1349. The Seventh Circuit reversed and vacated. The Count One convictions could be sustained only if provision of any service—food, medicine, transportation—to an unauthorized alien is a felony. To convict of mail or wire fraud, the false statements must have deprived a victim of “money or property.” There was no allegation that title papers and licenses are Indiana’s “property.” View "United States v.Reyes" on Justia Law