Justia White Collar Crime Opinion Summaries

Donald J. Trump filed a lawsuit in the United States District Court for the Southern District of Florida against dozens of defendants, including Hillary Clinton, the Democratic National Committee, several law firms, and individuals, alleging that they conspired to spread false claims of his collusion with Russia during the 2016 presidential campaign. Trump asserted multiple claims, including two under the Racketeer Influenced and Corrupt Organizations Act (RICO) and three under Florida law, such as injurious falsehood and conspiracy to commit malicious prosecution. He alleged that these actions caused him substantial financial harm and loss of business opportunities.After extensive pleadings, the district court dismissed Trump’s amended complaint with prejudice, holding that his federal racketeering claims were untimely and legally insufficient, and that his state law claims either failed to state a claim or were also untimely. The court found the complaint to be a “shotgun pleading” and cited numerous factual inaccuracies and implausible legal theories. The court also dismissed claims against certain defendants for lack of personal jurisdiction, but did so with prejudice. Subsequently, the district court imposed sanctions on Trump and his attorneys for filing frivolous claims and pleadings, based both on its inherent authority and Rule 11, and denied Trump’s motions for reconsideration and to disqualify the judge.Upon appeal, the United States Court of Appeals for the Eleventh Circuit affirmed most of the district court’s orders. The appellate court held that Trump’s racketeering claims were untimely and meritless, and that his state law claims failed for both procedural and substantive reasons. However, the Eleventh Circuit found that the district court lacked personal jurisdiction over one defendant, Orbis, and therefore vacated the dismissal with prejudice as to Orbis, remanding with instructions to dismiss those claims without prejudice. The sanctions orders and other rulings were affirmed, and requests for appellate sanctions were denied. View "Trump v. Clinton" on Justia Law

A nurse practitioner working in Georgia became involved in a nationwide Medicare fraud scheme between 2018 and 2019. She took part-time telemedicine jobs and reviewed patient charts for durable medical equipment (DME) prescriptions, such as neck and knee braces. The scheme involved submitting thousands of DME orders to Medicare for patients who had not actually been examined or treated as required by law. Federal investigators discovered she was signing orders, attesting to patient assessments and medical necessity, despite never contacting or examining the patients. Several orders were found to be fraudulent, such as prescribing braces to deceased or bedridden patients, or to patients with amputated limbs. She received compensation per chart reviewed, and her records indicated knowledge of the fraudulent nature of the activity.The United States District Court for the Southern District of Georgia presided over her trial, where she was charged with conspiracy, health care fraud, making false statements, aggravated identity theft, and related offenses. The jury found her guilty on sixteen counts but acquitted her of conspiracy to commit health care fraud. At sentencing, the district court applied a two-level enhancement for obstruction of justice based on perjury, citing her false testimony and inconsistencies. Her motion for a new trial was denied as untimely; the court rejected her claim of excusable neglect due to her attorney’s actions.On appeal, the United States Court of Appeals for the Eleventh Circuit reviewed four main issues: sufficiency of evidence, the lack of a deliberate ignorance jury instruction, the sentencing enhancement for perjury, and the denial of her new trial motion. The appellate court found sufficient evidence for all convictions, held that the absence of the deliberate ignorance instruction did not prejudice her substantial rights, affirmed the obstruction of justice enhancement, and found no abuse of discretion in the denial of the new trial motion. The Eleventh Circuit affirmed her convictions and sentence. View "USA v. Beaufils" on Justia Law

Casa Express Corp. obtained a $40 million judgment in the Southern District of New York against the Bolivarian Republic of Venezuela for unpaid bonds and a global note. After Venezuela failed to pay, Casa sought to enforce the judgment in Florida by targeting eight Miami properties owned by corporate entities allegedly controlled by Raul Gorrin Belisario. Casa claimed that Gorrin, through a bribery and currency-exchange scheme involving Venezuelan officials, used misappropriated Venezuelan funds to purchase these properties, and argued that the properties should be subject to a constructive trust in favor of Venezuela.Casa registered the New York judgment in the United States District Court for the Southern District of Florida and initiated supplementary proceedings under Florida law, seeking to execute the judgment against the properties. Casa impleaded Gorrin, several individuals, and six corporate entities as third-party defendants. The defendants moved for judgment on the pleadings, arguing, among other things, that the district court lacked ancillary jurisdiction over Casa’s claims. The magistrate judge recommended dismissal for lack of ancillary jurisdiction, and the district court adopted this recommendation, also finding a lack of personal jurisdiction over Gorrin. Casa appealed.The United States Court of Appeals for the Eleventh Circuit held that the district court lacked ancillary jurisdiction over Casa’s supplementary proceedings. The court reasoned that Casa’s action sought to impose liability on third parties not previously found liable for the New York judgment and was based on new facts and legal theories unrelated to the original breach of contract claims against Venezuela. The Eleventh Circuit affirmed the district court’s jurisdictional ruling, vacated its alternative merits rulings, and remanded with instructions to dismiss the case without prejudice for lack of subject matter jurisdiction. View "Casa Express Corp v. Bolivarian Republic of Venezuela" on Justia Law

Two individuals, both members of the Gangster Disciples gang, were prosecuted for their roles in a series of violent crimes in Georgia. The Gangster Disciples is a national criminal organization with a hierarchical structure, engaging in various illegal activities. The case centered on the aftermath of a gang member’s murder, which led to retaliatory killings. One defendant, Green, was implicated in the murders of two individuals believed to have violated gang rules, while the other, Chambers, was involved in orchestrating and carrying out another murder, as well as enforcing gang discipline.The United States District Court for the Middle District of Georgia presided over the joint trial of Green, Chambers, and a third co-defendant. The jury convicted Green of participating in a RICO conspiracy, finding he committed or aided in two murders. Chambers was convicted of RICO conspiracy, violent crime in aid of racketeering (VICAR murder), use of a firearm during a crime of violence, and causing death with a firearm. Chambers received two consecutive life sentences plus an additional term, while Green was sentenced to life imprisonment. Chambers’ attempts to delay the trial, including self-representation and last-minute requests for counsel, were denied by the district court, which found his actions to be calculated efforts to disrupt proceedings. Both defendants challenged their convictions and sentences on various grounds, including evidentiary rulings, jury procedures, and sentencing issues.The United States Court of Appeals for the Eleventh Circuit reviewed the case. It held that the evidence was sufficient to support Green’s RICO conspiracy conviction and that the admission of wiretap evidence, co-conspirator statements, and other challenged exhibits was proper. The court found no abuse of discretion in denying Chambers’ motion for a continuance or in the use of an anonymous jury and shackling procedures. Sentencing and restitution decisions were also affirmed. The Eleventh Circuit affirmed all convictions and sentences, finding no reversible error. View "USA v. Green" on Justia Law

Ephren Taylor, II, formerly CEO of City Capital Corporation, was indicted in 2014 for orchestrating a fraudulent investment scheme that targeted African American and Christian communities. Taylor promoted investments and promissory notes, misrepresenting their returns and using new investor funds to pay business expenses, resulting in losses exceeding $16 million for over 400 victims. He pleaded guilty to conspiracy to commit wire and mail fraud and was sentenced to 235 months in prison, later reduced to 223 months, with restitution ordered.Taylor filed a pro se motion under 28 U.S.C. § 2255 in the United States District Court for the Northern District of Georgia, alleging ineffective assistance of counsel and various judicial errors. The District Court, after adopting a magistrate judge’s report and recommendation, denied the motion, finding Taylor’s claims either procedurally defaulted, waived, or unsupported by the record. Taylor’s subsequent Rule 59(e) and Rule 60(b) motions were also denied, and he filed multiple additional motions, including to amend or supplement his § 2255 petition and to modify conditions of supervised release. The District Court denied these later motions, determining they were unauthorized second or successive filings under 28 U.S.C. §§ 2244(b) and 2255(h), and that it lacked jurisdiction due to Taylor’s pending appeal.On appeal, the United States Court of Appeals for the Eleventh Circuit affirmed the District Court’s denial of Taylor’s motions to reopen, supplement, and amend his original § 2255 motion, holding they were unauthorized second or successive filings barred by AEDPA’s gatekeeping provisions. The Eleventh Circuit also affirmed that Taylor’s challenges to the legality or constitutionality of his supervised release conditions could not be raised under 18 U.S.C. § 3583(e)(2). However, the court vacated the District Court’s denial of Taylor’s motion to modify conditions of supervised release and remanded for consideration of the relevant statutory factors. View "United States v. Taylor" on Justia Law

The case centers on allegations that Okaloosa County, the sponsor of Destin Executive Airport, and Jay Odom, a fixed-base operator, violated federal and Florida False Claims Acts. The dispute arose after Odom, who owned Destin Jet, allegedly acquired the only competing fixed-base operator, Miracle Strip Aviation (later Regal Air), resulting in a single entity controlling all aeronautical services at the airport. Despite this consolidation, the County continued to certify to the Federal Aviation Administration (FAA) that it was not granting any exclusive rights, a requirement for receiving federal funding. In 2019, Robert Smith, a pilot and relator, sought to establish a competing fixed-base operator but was denied by the County, prompting him to file suit alleging false certifications in grant applications.The United States District Court for the Northern District of Florida dismissed Smith’s amended complaint with prejudice. The court found that the False Claims Act’s public disclosure bar applied because the essential allegations had already been reported in two 2014 news articles, which described the consolidation and the resulting grant assurance violations. The district court also determined that Smith’s complaint failed to meet the heightened pleading standard for fraud and denied his request for leave to further amend the complaint.On appeal, the United States Court of Appeals for the Eleventh Circuit reviewed the dismissal de novo. The Eleventh Circuit held that Smith’s claims were barred by the False Claims Act’s public disclosure provision, as the news articles had already disclosed substantially the same allegations. The court further found that Smith was not an original source of the information, as his additional details did not materially add to the public disclosures. The Eleventh Circuit affirmed the district court’s dismissal and its denial of leave to amend, concluding that any amendment would be futile. View "Smith v. Odom" on Justia Law

Law enforcement officers in Baldwin County, Alabama, stopped a vehicle for a traffic violation and discovered three occupants: Timothy Buchanan, Jaleeshia Robinson, and Tyre Crawford. A search of the vehicle revealed forged and stolen identification cards, credit cards, and checks, as well as equipment for producing counterfeit checks. Buchanan admitted to cashing fraudulent checks using stolen or forged identification, and evidence showed he was in frequent communication with his co-defendants about the scheme. Robinson, who cooperated with the government, testified that Buchanan’s role was to cash checks, while she and Crawford created the fraudulent documents and stole checks from mailboxes.The United States District Court for the Southern District of Alabama presided over Buchanan’s jury trial. The jury acquitted him of one count of aggravated identity theft but convicted him on conspiracy to commit bank fraud, possession of five or more identification documents with intent to use or transfer, possession of counterfeited or forged securities, a second count of aggravated identity theft, and possession of stolen mail. The district court sentenced Buchanan to 116 months’ imprisonment and ordered restitution. Buchanan challenged the sufficiency of the evidence for several convictions, the application of a sentencing enhancement for sophisticated means, and the calculation of restitution.The United States Court of Appeals for the Eleventh Circuit reviewed the case. It affirmed Buchanan’s convictions, holding that sufficient evidence supported his convictions under an aiding and abetting theory, and that his aggravated identity theft conviction was not plainly erroneous under Dubin v. United States, 599 U.S. 110 (2023), because the use of another’s identification was central to the predicate offense. However, the court vacated the sentence in part, finding error in the application of the sophisticated means enhancement and in the restitution calculation, and remanded for further proceedings on those issues. View "United States v. Buchanan" on Justia Law

An American accountant and financial executive, who worked extensively in Russia, was investigated for failing to timely file U.S. tax returns and for concealing substantial assets in Swiss bank accounts. He received millions of dollars in compensation, which he deposited in Swiss accounts held under nominee names. After being notified by Swiss banks of compliance requirements, he transferred accounts and listed his then-wife as the beneficial owner. He did not file timely tax returns or required Foreign Bank Account Reports (FBARs) for several years, later attempting to participate in the IRS’s Streamlined Foreign Offshore Procedures by certifying his failures were non-willful. However, he omitted at least one account from his 2014 FBAR.A grand jury in the Middle District of Florida indicted him on multiple tax-related charges. At trial, the jury convicted him on four counts: failure to file income tax returns for 2013 and 2014, making false statements on his Streamlined certification, and failure to file a compliant 2014 FBAR. The district court sentenced him to 86 months’ imprisonment and ordered over $4 million in restitution to the IRS.The United States Court of Appeals for the Eleventh Circuit reviewed the case. It held that the district court erred in tolling the statute of limitations for the 2013 and 2014 failure-to-file tax return charges because the government’s application for tolling did not specifically identify those offenses, nor did the court make the required findings. As a result, the convictions on those counts were reversed as time-barred. The court affirmed the denial of the motion to suppress evidence from the email search, finding no abuse of discretion in deeming the motion untimely. The court also found no constructive amendment or material variance regarding the FBAR charge. The sentence and restitution order were vacated and remanded for resentencing and further findings on restitution. View "United States v. Gyetvay" on Justia Law

Robert Kennedy was convicted of possessing a firearm as a convicted felon, possessing heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. The convictions were based on evidence found during a search of his apartment, including drugs, scales, and a firearm. Kennedy's prior convictions for burglary and drug offenses led to his classification as an armed career criminal and a career offender, resulting in a guidelines range of 420 months to life imprisonment. He received a below-guidelines sentence of 360 months.The United States District Court for the Middle District of Georgia admitted text messages and expert testimony over Kennedy's objections and found sufficient evidence to support his convictions. The court also determined that Kennedy's prior convictions qualified him for the ACCA and career offender enhancements, despite his arguments to the contrary.The United States Court of Appeals for the Eleventh Circuit reviewed the case and affirmed the district court's decisions. The appellate court held that the text messages were admissible as they were directly related to the charged offense and not subject to Rule 404(b). The expert testimony was also deemed appropriate as it did not violate Rule 704(b). The court found sufficient evidence to support Kennedy's convictions, including testimony linking him to the drugs and firearm.The appellate court also upheld the ACCA enhancement, finding that Kennedy's prior burglary convictions qualified as predicate offenses. The court rejected Kennedy's arguments against the career offender enhancement, affirming that his prior drug convictions met the criteria. Finally, the court found Kennedy's sentence to be both procedurally and substantively reasonable, given the circumstances and the guidelines range. The sentence was affirmed. View "United States v. Kennedy" on Justia Law

Joff Stenn Wroy Philossaint pled guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. These charges stemmed from his involvement in a scheme to fraudulently obtain Paycheck Protection Plan (PPP) and Economic Injury Disaster Loan (EIDL) loans. He was sentenced to 50 months in prison, followed by supervised release, and ordered to pay $3.85 million in restitution. Additionally, a forfeiture judgment of $673,210 was entered against him. On appeal, Philossaint contested the forfeiture amount, arguing it was miscalculated.The United States District Court for the Southern District of Florida initially handled the case. Philossaint pled guilty to the wire fraud and money laundering conspiracy charges, and the court accepted a factual proffer detailing his role in the fraudulent loan scheme. The presentence investigation report (PSI) provided additional details, including the specific companies involved and the amounts of the fraudulent loans. The government moved for a preliminary order of forfeiture, but miscalculated the amount by assuming Philossaint received a 10% kickback on every loan funded, which was incorrect.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court found that the district court had committed a clear error in determining the forfeiture amount due to the government's miscalculation. The correct amount of forfeiture should have been $549,226.30, based on the accurate figures of the loan proceeds and kickbacks Philossaint received. The Eleventh Circuit vacated the forfeiture order and remanded the case for further proceedings, noting that the district court did not make any factual findings about whether Philossaint was a leader or mastermind of the scheme, which could affect the forfeiture amount under the Honeycutt v. United States hypothetical. View "USA v. Philossaint" on Justia Law