Justia White Collar Crime Opinion Summaries

Ahmadou entered the United States from Niger in 2016 under an F1 student visa. In 2021, he visited a Texas gun range, rented and fired guns, and completed a waiver form that did not list his visa status as a prohibited category for firearm possession under federal law. Investigators connected Ahmadou to an Islamic extremist involved in a 2020 attack, and a search of Ahmadou’s devices revealed extensive ISIS propaganda. Undercover agents were present during his visits, but did not instruct the gun range staff to act differently. Ahmadou was later arrested and admitted his gun range visits were in preparation for potential jihad overseas.In the United States District Court for the Southern District of Texas, Ahmadou moved to dismiss his indictment, arguing he was entitled to the defense of entrapment by estoppel based on alleged misrepresentation by the gun range’s waiver form. The district judge denied his motion, excluded evidence of the defense, and refused his proposed jury instruction. After trial, a jury found Ahmadou guilty on all counts. At sentencing, the court denied a reduction for acceptance of responsibility and declined to apply the terrorism enhancement, but imposed an above-guidelines sentence, citing Ahmadou’s conduct and associations.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court’s decisions. It held that entrapment by estoppel did not apply because the gun range’s waiver form was not an affirmative misrepresentation, and the firearms dealer was not a federal official or agent for purposes of the defense. The Fifth Circuit also found that denial of the acceptance-of-responsibility reduction was not clearly erroneous, and the above-guidelines sentence was both procedurally and substantively reasonable, as it was based on permissible considerations under 18 U.S.C. § 3553(a). View "USA v. Ahmadou" 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

Two healthcare professionals operated a clinic specializing in pain management in Kentucky. One owned and managed the clinic, while the other served as its medical director. Together, they implemented a scheme to maximize profits by routinely ordering and billing insurers for both basic and more expensive, specialized urine drug tests for patients, regardless of actual medical need. The clinic eventually acquired in-house testing equipment to further increase billing. Staff raised concerns about the medical necessity of the tests and the reliability of the equipment, but the practice continued. The clinic also billed for tests conducted on malfunctioning equipment and for tests whose results could not be used for patient care due to processing delays.A grand jury indicted both individuals for conspiracy to commit health care fraud, substantive health care fraud, and (for one defendant) unlawful distribution of controlled substances. Both defendants went to trial in the United States District Court for the Eastern District of Kentucky. The jury convicted one defendant of health care fraud, and the other of both health care fraud and conspiracy to commit health care fraud. After denying post-trial motions for acquittal and new trial, the district court sentenced both to below-Guidelines imprisonment terms, after calculating loss amounts based on insurer payments for unnecessary testing, with a discount for tests likely to have been medically necessary.The United States Court of Appeals for the Sixth Circuit reviewed the convictions and sentences. The court held there was sufficient evidence to support both defendants’ convictions, upheld the district court’s evidentiary rulings (including admission of propensity and patient death evidence with limiting instructions), found no variance between the indictment and proof at trial, and determined that one defendant’s conflict-of-interest waiver was valid. The court also affirmed the district court’s methodology for estimating loss amounts for sentencing and restitution. The Sixth Circuit affirmed all convictions and sentences. View "United States v. Siefert" on Justia Law

Michael Lawrence Rosebar was convicted of multiple counts of bankruptcy fraud, wire fraud, and first-degree fraud after misrepresenting himself as a licensed home improvement contractor and misappropriating funds from homeowners over a seven-year period. Following a jury trial in the United States District Court for the District of Columbia, Rosebar was found guilty on several counts and sentenced to 120 months of imprisonment and thirty-six months of supervised release. His sentence was calculated using a criminal history category of II, which included two status points for committing the offenses while on probation.Rosebar appealed his conviction, but the United States Court of Appeals for the District of Columbia Circuit affirmed the district court’s judgment. After the Sentencing Commission amended the United States Sentencing Guidelines with Amendment 821, which changed the calculation of status points for defendants with fewer criminal history points, Rosebar filed a motion in the district court seeking a sentence reduction under 18 U.S.C. § 3582(c)(2) and USSG § 1B1.10. The district court found Rosebar eligible for a reduction but, after considering the factors in 18 U.S.C. § 3553(a), denied the motion, citing the seriousness of his offenses, their impact on victims, and his lack of remorse.On appeal, the United States Court of Appeals for the District of Columbia Circuit reviewed the district court’s denial for abuse of discretion. The appellate court held that the district court properly followed the required two-step inquiry, considered all relevant factors, and did not abuse its discretion in denying the sentence reduction. The court affirmed the district court’s order denying Rosebar’s motion for a sentence reduction. View "USA v. Rosebar" on Justia Law

Four individuals established two illegal gambling businesses in northern Ohio, operating gaming rooms that paid out winnings in cash. To avoid detection, the true owners concealed their involvement by using nominal owners and destroyed financial records. The businesses operated almost entirely in cash, allowing the owners to hide profits and evade taxes. One of the defendants, an accountant, played a central role in managing finances and preparing false tax returns for the group. The scheme also involved efforts to launder money and shield assets from IRS collection, including the use of shell companies and deceptive real estate transactions.After law enforcement executed multiple search warrants in 2018, a grand jury indicted several participants on conspiracy, illegal gambling, tax evasion, and related charges. The United States District Court for the Northern District of Ohio denied motions to dismiss and to sever the trials. At trial, a jury convicted two defendants on nearly all counts. At sentencing, the court calculated tax losses exceeding $3.5 million for each defendant, resulting in lengthy prison terms and substantial restitution orders. Both defendants challenged the loss calculations, the denial of severance, jury instructions, and other procedural aspects.The United States Court of Appeals for the Sixth Circuit reviewed the case. It held that the district court did not abuse its discretion in denying severance, as no compelling prejudice was shown. The court found no error in the denial of the motion to dismiss the tax evasion count, concluding that affirmative acts of evasion within the limitations period were sufficiently alleged. The appellate court also upheld the district court’s tax loss calculations, the application of the sophisticated means enhancement, and the handling of jury instructions. The sentences were affirmed, but the case was remanded for the limited purpose of correcting a clerical error in the judgment regarding restitution interest. View "United States v. DiPietro" on Justia Law

Over a fourteen-month period, the defendant and his wife engaged in a scheme to purchase seven high-end used vehicles from Kansas dealerships, financing the purchases with bank loans obtained through fraudulent misrepresentations on loan applications. After acquiring the vehicles, they altered title documents to remove the banks’ liens, enabling them to obtain false clear titles. These clear titles were then used to either sell the vehicles or secure title loans for cash. The defendant made few or no payments on the original car loans, and the fraudulent activity involved both Kansas and Georgia vehicle registrations.The United States District Court for the District of Kansas initially indicted both the defendant and his wife on seventeen counts, including conspiracy, bank fraud, wire fraud, and money laundering. The court severed the wife’s case after she agreed to testify against the defendant in exchange for dismissal of her charges, though she ultimately did not testify. At trial, the government dismissed one count and renumbered the remaining charges. The jury convicted the defendant on all sixteen counts, and the district court imposed concurrent forty-six-month sentences. After sentencing, the government dismissed all charges against the wife.On direct appeal, the United States Court of Appeals for the Tenth Circuit reviewed the sufficiency of the evidence for seven of the defendant’s convictions. The court reversed the bank fraud conviction on Count 2, finding no evidence that the defendant aided or abetted his wife’s fraudulent loan. It also reversed the wire fraud conviction on Count 9 due to insufficient proof of the interstate commerce element. However, the court affirmed the money laundering convictions on Counts 12 through 16, concluding that sufficient evidence supported the finding that the defendant’s transactions were designed, at least in part, to conceal or disguise the proceeds of bank fraud. The case was remanded for resentencing. View "United States v. Cunningham" on Justia Law

A native and citizen of the Dominican Republic, the petitioner was admitted to the United States as a lawful permanent resident in 2007. In 2022, he pleaded guilty in the United States District Court for the Middle District of Florida to conspiracy to commit money laundering under 18 U.S.C. § 1956(h). The judgment included a forfeiture order stating that at least $3,934,518 was obtained and laundered by the petitioner as a result of his participation in the conspiracy. In 2023, the Department of Homeland Security initiated removal proceedings, alleging that the petitioner was removable as an aggravated felon because his offense involved more than $10,000.An Immigration Judge found the petitioner removable as charged, relying on the conviction records, including the forfeiture order. The petitioner applied for cancellation of removal, but the Immigration Judge concluded he was ineligible due to the aggravated felony conviction. On appeal to the Board of Immigration Appeals, the petitioner argued that the forfeiture order did not meet the evidentiary standard required to establish that his conviction was an aggravated felony, as it did not specify the amount directly attributable to his conduct. The Board, applying the circumstance-specific approach endorsed by the Supreme Court in Nijhawan v. Holder, found that the forfeiture order was sufficient to establish that the funds involved exceeded $10,000 and dismissed the appeal.The United States Court of Appeals for the Fifth Circuit reviewed the Board’s decision de novo. The court held that an unrebutted forfeiture order entered solely against an alien, finding a specific amount of laundered funds attributable to the alien’s conduct of conviction, can constitute clear and convincing evidence that the amount of funds required by 8 U.S.C. § 1101(a)(43)(D) is met. The court denied the petition for review. View "Reyes v. Bondi" 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

A former U.S. Navy Reserve officer, after serving in Afghanistan, maintained contact with an Afghan businessman who had provided interpreters to U.S. forces. In 2018, the businessman asked the officer to write letters of recommendation for Afghan nationals seeking Special Immigrant Visas (SIVs) to the United States, offering payment in return. The officer agreed, negotiating a price and ultimately producing multiple letters that attested to his personal knowledge of the applicants’ character and service, despite not actually knowing or remembering them. The letters were used in SIV applications, and the officer received payment, which he attempted to disguise as consulting fees through a false invoice.A grand jury in the United States District Court for the District of New Hampshire indicted the officer on four counts: conspiracy to commit bribery and false writing, bribery, false writing, and conspiracy to commit concealment money laundering. At trial, the officer moved for acquittal on the basis of insufficient evidence of falsity in the letters, but the district court denied the motion. The jury convicted him on all counts, and the district court later denied a renewed motion for acquittal, finding sufficient evidence for the jury to conclude the letters contained false statements and that the government was not required to prove falsity for all charges. The court sentenced the officer to thirty months’ imprisonment.On appeal, the United States Court of Appeals for the First Circuit reviewed the sufficiency of the evidence de novo and affirmed the convictions. The court held that there was sufficient evidence for a rational jury to find the letters contained false statements about the applicants’ character and the officer’s personal knowledge. The court also rejected challenges to the bribery and money laundering convictions, finding no clear or obvious error and no impermissible merger of offenses. The convictions and sentence were affirmed in full. View "United States v. Pittmann" on Justia Law