Justia White Collar Crime Opinion Summaries

Joe May was indicted for conspiracy to commit wire fraud, mail fraud, and violations of the Anti-Kickback statute, among other charges, related to defrauding TRICARE. May, a medical doctor, was recruited to sign prescriptions for compounded drugs without evaluating patients. He signed 226 prescriptions, mostly without determining medical necessity. May received cash payments for his participation. When investigated, May created false medical records and lied to the FBI.The United States District Court for the Eastern District of Arkansas convicted May on all counts and sentenced him to 102 months imprisonment, ordering restitution of over $4.6 million. May appealed, challenging the admission of business records, limitations on cross-examination, jury instructions, the government's closing argument, and the sufficiency of evidence for certain charges.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court found no abuse of discretion in admitting business records or limiting cross-examination. The court upheld the jury instructions and found no error in the government's closing argument. The court determined there was sufficient evidence for the conspiracy, mail fraud, and kickback charges. However, the court found plain error in one count of aggravated identity theft related to Perry Patterson, as the jury was not instructed on the correct underlying offense.The Eighth Circuit reversed the conviction on the aggravated identity theft count related to Patterson, remanded to vacate the special assessment for that count, and affirmed all other aspects of the case. View "United States v. May" on Justia Law

Midamar Corporation and Jalel Aossey conditionally plead guilty to one count of conspiracy to commit several offenses in connection with a scheme to sale falsely labeled halal meat. William Aossey was convicted of conspiracy, making false statements on export certificates, and wire fraud in connection with the scheme. On appeal, defendants challenged the district court's denial of their motion to dismiss, arguing that Congress had reserved exclusive enforcement authority over the alleged statutory violations to the Secretary of Agriculture, and that the United States Attorney could not proceed against defendants in a criminal prosecution. The court rejected defendants' contention that two sections of the Meat Inspection Act, 21 U.S.C. 674 and 607(e), show that Congress removed these prosecutions from the jurisdiction of the district courts. Rather, the court concluded that the district court did not err in denying the motion to dismiss, because Congress afforded the Executive two independent avenues to address false or misleading meat labeling. Accordingly, the court affirmed the judgment. View "United States v. Aossey, Jr." on Justia Law

Defendant appealed his sentence and order of restitution after pleading guilty to one count of wire fraud. The court concluded that the district court committed procedural error when it departed upward from the advisory sentencing guidelines and thus remanded for resentencing. In this case, the analysis the district court provided did not adequately explain and support the district court's significant departure from Criminal History Category II to Category VI. The court also concluded that defendant's appeal waiver was enforceable as to the restitution order and thus dismissed the appeal of the restitution order. View "United States v. Sullivan" on Justia Law

Defendants Delgrosso and Cain were convicted of conspiracy to distribute methamphetamine, money laundering, and conspiracy to commit money laundering. Delgrosso also was found guilty of failing to file IRS Form 8300. The court concluded that the district court did not abuse its discretion in denying defendants' motions for a new trial based on Jerry Wright's post-trial affidavit because, even if Wright testified or the affidavit were admitted, the Government could impeach Wright's credibility by introducing evidence of his seven prior felony convictions. Furthermore, even if the jury believed Wright's statements, that does not mean that it would likely acquit defendants. In this case, the Government provided ample evidence that would allow the jury to conclude that Delgrosso and Cain knew or willfully blinded themselves to the fact that Wright acquired his cash through drug sales. The court also concluded that the district court did not abuse its discretion in denying Delgrosso's motion for a new trial based on Government misconduct under Brady v. Maryland where it was untimely and, even if it was timely, his allegations either relate to issues that were irrelevant or were directly contradicted; the district court did not plainly err by instructing the jury on willful blindness; the district court did not err in denying Delgrosso's motion for acquittal where sufficient evidence supported the jury's verdict; and the district court did not clearly err in denying Delgrosso safety-valve relief. Accordingly, the court affirmed the judgment. View "United States v. Delgrosso" on Justia Law

Defendant pled guilty to eight counts of a sixteen count indictment that included wire fraud, money laundering, and tax evasion. Defendant appealed his sentence of 111 months in prison and 5 years of supervised release. The court affirmed the sentence but remanded the forfeiture order for further proceedings. The district court, upon rehearing, ordered forfeiture of the entirety of defendant's Castlerock property under 18 U.S.C. 982(a)(1). The court held that the evidence satisfied the requisite nexus between defendant's money-laundering convictions and the entirety of the property at issue. Accordingly, the court affirmed the judgment. View "United States v. Beltramea" on Justia Law

Defendant was ordered to pay restitution of almost $500,000 after he pled guilty to bank fraud and aggravated identity theft. The court concluded that, although the district court missed the 90-day deadline, the district court retained its power to order restitution; the government failed to provide sufficient evidence of the ultimate losses defendant caused the victim banks; and since more than four years have passed after defendant was originally sentenced, and in the interest of finality, the court declined to remand for a third restitution proceeding. Therefore, the court vacated the restitution amount. View "United States v. Adejumo" on Justia Law

Plaintiffs, 92 investors in a Ponzi scheme called the British Lending Program (BLP), filed suit against PNC, alleging, among other things, (1) violations of Missouri's Uniform Fiduciaries Law (UFL); (2) aiding and abetting the breach of fiduciary duties; (3) conspiracy to breach fiduciary duties; and (4) conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1962(d). Specifically, plaintiffs alleged that PNC's predecessor, Allegiant, conspired with and aided Martin Sigillito in his scheme to defraud investors when it served as custodian for the self-directed IRAs of those who chose to invest in the BLP at its inception. The court granted summary judgment to PNC, concluding that even if the court overlooked plaintiffs' failure to cite any legal authorities in support of their RICO and common-law claims, those claims fail on the merits. In this case, the evidence is insufficient to establish a reasonable fact dispute as to whether Allegiant, PNC's predecessor, objectively manifested an agreement to participate in criminal activity with Sigillito, had a meeting of the minds with Sigillito, or substantially assisted or encouraged Sigillito's conduct. The court also rejected plaintiffs' UFL claim, concluding that no evidence exists that Allegiant processed any transaction with actual knowledge that Sigillito was breaching his fiduciary duties, and the evidence fails to show that Allegiant acted in bad faith. Accordingly, the court affirmed the judgment. View "Aguilar v. PNC Bank, N.A." on Justia Law

Defendant pleaded guilty to one count of mail fraud arising from a scheme in which he overpaid for commodities to the benefit of certain customers while managing a grain elevator for Bunge. The district court ordered defendant to pay $1,561,516.25 in restitution to Bunge, which included $87,536.65 in attorney's fees and expenses Bunge paid to an outside counsel during the investigation of defendant's fraudulent scheme and his prosecution. The court affirmed the portion of the district court's restitution award which does not include attorney's fees; vacated the portion awarding attorney's fees and expenses; and remanded to the district court to specifically address whether the attorney's fees incurred after the government initiated its own investigation were "necessary" under 18 U.S.C. 3663A(b)(4). View "United States v. Carpenter" on Justia Law

Defendant appealed his sentence after pleading guilty to four counts of wire fraud. The court concluded that, because the district court did not apply one of the two total offense levels specifically contemplated by the plea agreement, defendant's appeal waiver does not preclude this appeal. The court concluded that the district court did not clearly err in determining that defendant's post-plea conduct was inconsistent with a finding that he had accepted responsibility for his offenses. The court concluded, however, that it must reverse and remand so that the district court may determine in the first instance whether M.U. was a victim under the Guidelines and, if necessary, proceed to resentencing. The court further concluded that the district court did not plainly err when determining the amount of restitution owed to A.B. and R.W. Finally, the court declined to consider defendant's claim that he received ineffective assistance of counsel. Accordingly, the court otherwise affirmed the judgment. View "United States v. Binkholder" on Justia Law

Defendant was convicted of laundering and conspiring to launder money, and making a false statement. Defendant had laundered drug proceeds received from his brother-in-law, Brandon Lusk, through his law firm, and then lied to an IRS agent about his financial arrangements with Lusk. When Lusk was investigated by authorities, defendant acted as his lawyer and advised him to hide the nature of their financial relationship. The court concluded that the district court acted well within its discretion to rule that a question implying that defendant had associated with a person later charged with criminal activity, even if improper, did not require a new trial. In this case, the question was half-finished and unanswered. Moreover, the other inculpatory evidence the jury heard was extensive. The court also concluded that the district court properly considered the fact that defendant put his own personal interests ahead of his clients, and that this factor was enough to justify the sentence imposed, even if it resulted in a sentence that was harsh in comparison to others involved in the drug trafficking operation. Finally, there is no indication that the district court punished defendant more harshly because he was a lawyer. Accordingly, the court affirmed the judgment. View "United States v. Boedigheimer" on Justia Law