MANAFORT FOUND GUILTY ON EIGHT COUNTS

[Photo from wikipedia]

     As you have probably heard by now, former Trump campaign chairman and businessman, Paul Manafort, was convicted by a jury in federal court yesterday on eight counts of tax and bank fraud. The jury was reportedly unable to reach a verdict on the ten remaining charges. Sentencing will be at a later time.  Manafort also still faces other federal charges in the D.C. district.

As a practical matter, being convicted on even one count, in federal court, which utilizes the federal sentencing guidelines, is sufficient for a federal judge to consider all relevant conduct in imposing sentence. And there is no parole federally.
    

PROFFERS IN FEDERAL CRIMINAL CASES

[Photo from Wikipedia]

     A proffer is a method often employed by criminal defense attorneys and federal prosecutors to meet and discuss how a defendant could help the government in its investigation, without risking further incrimination.  In short, a proffer involves making an "off the record" offer of proof, in order to help the parties potentially progress further toward a negotiated settlement of some sort.  In some criminal cases, the defendant may simply get a better plea bargain.  In other cases, he or she may obtain immunity from prosecution.

     It is important that a defendant retain a defense lawyer who is knowledgeable about proffers and how cases are made in the federal criminal courts.  Experience counts!  It is also important that your defense attorney should obtain a written proffer letter agreement which clearly sets forth that any proffer is off the record.

     Richard H. Goolsby, Sr., of the Goolsby Law Firm LLC, is Augusta, Georgia's only former twenty year federal prosecutor.  Please call us at (706) 863-5281 for a free initial consultation.

BLAGOJEVICH APPEAL DENIED AGAIN

[Blagojevich photo from wikipedia]

     According to news reports, the appeal to the United States Supreme Court on behalf of former Illinois Governor Rod Blagojevich has been denied a second time.

     As you recall, Blagojevich was convicted for, among other things, trying to sell the former Senate seat of former President Obama.

     Blagojevich will reportedly be eligible for release in 2024.

COOK COUNTY ILLINOIS JUDGE FOUND GUILTY OF MORTGAGE FRAUD

[Scales depiction from wikipedia]

Have you heard the news about the mortgage fraud conviction of Cook County Circuit Judge 

Judge Jessica Arong O’Brien?  Last week, she was found guilty in federal court of two fraud counts related to false statements she made in loan applications years before she took the bench. She reportedly lied about her income while purchasing two investment properties and then paid kickbacks to a straw purchaser who subsequently defaulted on the loans.

As Assistant U.S. Attorney Matthew Madden told the jury in closing argument, "she used lies to buy and sell these properties." Sentencing for Judge O'Brien will be reportedly be held at a later date.

A Goolsby "War Story:" More Examples of Kickbacks in Fraud Cases

[Stacks of Cash Depiction from wikipedia]

Recently, I started a series of posts in which I describe examples of kickbacks which were paid in major fraud cases I saw as a former federal prosecutor. Currently, I am a criminal defense lawyer in Augusta, Georgia, where I practice law with my sons, but I handled a number of significant white collar criminal cases as an Assistant U.S. Attorney for over 20 years.

In one major "honest services" mail fraud case, the defendant construction company paid a total of $2.7 million in kickback payments to an employee of another company, in exchange for being awarded profitable construction contracts by the other company's employee. One of the many kickbacks, or rewards, paid in this case included a total of $13,945.00 paid to two dating services, (for the employee's benefit and enjoyment), including one dating service located in Atlanta and another one located in San Diego. In addition, the defendant construction company actually paid for the (other company's) employee's travel costs to fly around the country to date all the women he met through the dating services!

Now, you must admit, while fraud is wrong, those are nice kickbacks!

Insurance Fraud--The Hard Way!

[Photo of hand from wikipedia]

As a former federal prosecutor, I handled a large number of white collar crime cases involving insurance fraud.  In my twenty year career as an AUSA, I thought that I saw it all!  But I was wrong!

Did you read about the South Carolina man who was charged in federal court this week with essentially conspiring with two other men to intentionally cut off the hand of one of the other two men (with a pole saw) and then file for insurance!?  According to news reports, the three men then submitted insurance claims on a homeowner's insurance policy (and "accidental" death and dismemberment policies) and fraudulently obtained a whopping $671,000! 

Of course, as an Augusta, Georgia criminal defense lawyer, I must emphasize that the indictment is only a charge which must be proven by the government and that the defendant is entitled to his day in court.

But, as to the alleged incident, it makes one wonder how the parties would determine who would be on which end of the pole saw!  Which end would you select?  And it also raises the question of whether any of us would be willing to "lose" a hand for this (or any) amount of money!

What do you think?

Don Lepre, Fraud, and Lessons About Missing Court

[Photo from dailymail.co.uk]

As a former federal prosecutor and, currently, as an Augusta, Georgia criminal defense lawyer, I can tell you that one important lesson I have learned about criminal cases is that -- no matter what else happens -- you must always show up at court on time.  You must never keep a judge waiting! 

Well, according to news reports, Mr. Don Lepre, the so-called "King of Infomercials," has apparently never learned this lesson.  Lepre has reportedly now been arrested in Tempe, Arizona by U.S. Marhals after missing his arraignment, which was scheduled for earlier this week in Phoenix.  If he had appeared in court, Lepre had reportedly been expected to enter a not guilty plea to federal fraud charges.

The fraud charges, including conspiracy, mail fraud, wire fraud, and money laundering, reportedly revolve around Lepre's business, the "Greatest Vitamins in the World."  The indictment alleges, among other things, that numerous victims were promised money which they never received for selling vitamins.  Of course, Lepre has a right to enter a not guilty plea and a right to a jury trial.

But first, Lepre apparently must learn to show up at court!  And I am quite confident that a federal judge will now teach him this important lesson and ensure he shows up from now on!

A Goolsby "War Story:" The Case of the Older Woman and Pretrial Diversion

In the last post, I discussed the pretrial diversion program, which is an available alternative to prosecution in the federal court system. In this post, I want to tell you a "war story" about a time I agreed to a defense lawyer's entreaties to afford his client this lenient alternative to prosecution. You be the prosecutor! You decide whether or not you would have done the same! Here are the facts:

The Department of Justice has well-publicized guidelines concerning which cases should qualify for pretrial diversion. As you would imagine, the cases should generally be very minor, non-violent crimes by first offenders. Once, years ago, as a young federal prosecutor, I was prosecuting a woman, easily in her mid-sixties, who was a local bank president, for embezzling bank funds. In particular, she was giving herself some unauthorized "extra" interest on some of her personal savings accounts. To me, it was a routine criminal case for which this defendant needed to "do some time," and also to serve as an example to others.

But then, I got a telephone call from her criminal defense attorney. He and I had worked together previously when we were both employed together at the district attorney's office. I trusted him implicitly to tell me the truth. The criminal defense lawyer proceeded to tell me that he was worried about this client possibly taking her life. He went on to explain that, in the past year, she had lost her husband and had fought her own battle against cancer. He also described other ordeals she had endured which I won't go into here. (And I have changed some of the facts here, too, but the essential facts remain). Her attorney seemed genuinely concerned about what she might do if she was prosecuted and sentenced to prison.

Here is the decision I made: After careful consultation with others, including my case agent, I agreed to give this defendant pretrial diversion, in lieu of prosecution. Ordinarily, since she was a bank executive, I wouldn't have considered it. But looking back, I am glad I did it. I became convinced that she might not make it to prison and, frankly, I had better things to do than to kill this older woman! So, if I erred, at least I erred on the side of life! What do you think? Was I too lenient? Was I hoodwinked? What would you have done if you were the prosecutor?

As another point, I am sure you will agree that prosecutors, when exercising prosecutorial discretion, should try to be be consistent from case to case, (but, at the same time, they must also consider the unique facts of each case). Should it matter that she was older and had suffered several serious tragedies in her life?

As a post script, when I informed the defense attorney about my decision, I also teased with him a bit and made him promise not to broadcast to the local criminal defense bar that I was a wimp! Instead, I told him that I expected him to tell everyone what a tough prosecutor I was!

Pretrial Diversion v. First Offender Probation

The availability of pretrial diversion is an example of one advantage which the federal criminal justice system has over the Georgia, (state), criminal justice system. In other words, as a former federal prosecutor, I was able to "divert" some appropriate cases out of the criminal justice system through pretrial diversion. This alternative is unavailable to state prosecutors in Georgia. First offender probation is the closest alternative available to state prosecutors, but it requires going to court, getting sentenced by a judge, and serving a probationary sentence before the slate is "wiped clean."
With pretrial diversion, on the other hand, the defendant never goes to court. Instead, the defendant, who has no criminal record, (and who has committed a minor white collar offense), and his or her criminal defense lawyer, must simply sign a pretrial diversion agreement in which the defendant generally agrees to make restitution and perhaps do some community service. As long as they abide by the agreement, they can avoid prosecution. As a federal prosecutor, I generally used pretrial diversion in minor cases involving a simple, one-time theft, e.g. by a bank teller.
Generally, maybe it is true that the states can't learn much from the feds! But don't you agree that the states should at least copy the federal government by allowing pretrial diversion as another sentencing alternative?

Reasons Why You Need An Experienced Federal Criminal Defense Lawyer For A Federal Criminal Case

There are so many kinds of lawyers "out there!" For example, there are divorce lawyers, real estate lawyers, personal injury attorneys, and bankruptcy lawyers, just to name a few. But did you know that there are also different kinds of criminal lawyers, based upon the types of criminal cases which they are experienced in handling?

So, what should you do if you are a target of a federal grand jury investigation? In other words, what kind of criminal lawyer do you need if you face potential federal criminal charges?

In my opinion, any person facing the possibility of a federal criminal indictment should try to find an experienced federal criminal defense lawyer, and not just any criminal defense attorney will do. Naturally, I will admit I am biased, because I am a former federal prosecutor who has over twenty years of experience in trying all types of criminal cases in federal court. But please also consider the following reasons why, in my opinion, you should look only for an experienced federal criminal lawyer to help you in this situation.

First of all, the federal court procedural rules are different. Most criminal lawyers, (even some outstanding advocates I know), who practice only in the state courts, essentially have no clue about the pretrial rules which apply in federal court. In federal court, the government must comply, for example, with the federal Speedy Trial Act and the Jencks Act. Also, many state criminal lawyers do not know the difference between a "Rule 11" and "Rule 16!"

In addition, an experienced federal criminal lawyer will more likely know the federal agents and prosecutors and how to plea bargain in federal court. Trust me, folks, things are different when you deal with the feds!

Also, jury selection rules and trial procedural rules are often different from the procedures followed by the state courts. While it is not always the case, sometimes federal criminal cases are also a lot more complex than state cases. As a result, federal criminal cases may also require a more sophisticated understanding of the federal charges and what the government must prove at trial. The difference between the two court systems is like the difference between playing checkers and chess!

Finally, sentencing in federal court is vastly different from sentencing in state court. In federal court, a criminal lawyer must be familiar with the infamous federal sentencing guidelines. These guidelines can be very complicated! At times, sentencing in a federal criminal case can resemble a "mini-trial."

So, have I convinced you to look for an experienced federal criminal defense attorney in your area for your federal criminal case?

Mail Fraud and Wire Fraud

Do you know how the feds really catch white collar criminals and how the cases are often charged in federal court? The answer lies in the use of the U.S. mail by white collar criminals.

Years ago, Congress made it a federal crime, (in 18 U.S.C. 1341), to use the U.S. mail to help further a fraudulent scheme. This federal crime is known as mail fraud. Thus, any time someone sends a fraudulent solicitation or bogus claim in the mail, they may have violated the federal mail fraud statute. In addition, Congress also made wire fraud, (18 U.S.C. 1343), a federal crime. Therefore, any time a con artist makes a telephone call or uses the internet in furtherance of his scam, he has likewise violated federal law and may be visited by an F.B.I. agent.

And don't think you can get away with your crime simply by sending your bogus claims via federal express. Congress also included use of common carriers in the mail fraud statute, too! So, maybe you should just use "donkey mail," if you want to avoid a date in federal court!