Former Texas Congressman Tom DeLay Wins Appeal

[Tom DeLay's photo from "Dancing With the Stars" from wikipedia]

Did you hear the news? According to various news reports, a Texas appellate court has set aside the money laundering conviction of former Texas Congressman Tom DeLay. You may recall that DeLay had been convicted of allegedly funneling $190,000 in corporate contributions through his political action committee to various local state Republican candidates. Texas law generally forbids corporate contributions to state candidates. But Texas law also requires that, as an essential element, in order for it to be money laundering, the funds in question must, in fact, be illegally obtained funds.

In setting aside DeLay's conviction, the two-one court majority found that the State had failed to prove that the money which DeLay donated to the local candidates was, in fact, tainted money.

This case illustrates the point that prosecutors must be sure that they can prove each and every element of a criminal charge BEFORE seeking an indictment. As a former federal prosecutor, I faced the same challenge on each federal indictment I sought.

Naturally, DeLay is reportedly elated over the appellate court's decision. It remains to be seen whether or not the district attorney will appeal to the highest Texas appellate court. But one can only hope, in my opinion, that they will get their ducks in a row before proceeding any further on such a questionable course. In my opinion, this was a rank, ill-advised political prosecution from the beginning. The appellate court's finding certainly supports that conclusion!  What do you think?

Mark Twain, Crime Rates, And Statistics

[Photo of Mark Twain/Samuel Clemens from wikipedia]

In my opinion, Mark Twain had it right when he said about statistics that, "[t]here are three kinds of lies: lies, damn lies, and statistics!" I don't trust crime statistics, either! I thought about Twain's quote when I read online, today, at neighborhoodscout.com, that, based upon statistical reports, Columbia County, the county I live in, is one of the safer counties in our State, in contrast to neighboring Augusta, Georgia, which reportedly has one of the highest crime rates!

Now, don't get me wrong! As a former state and federal prosecutor, and as a long-time Columbia County resident, I know fully well that, generally, Columbia County is a much safer place. And our local sheriff does a great job. But my point is that you can't believe statistics alone in drawing any conclusions about which place is safer, because, simply put, statistics are unreliable.

Let me give you an example to prove my point! Let's assume that a sheriff in one county works really hard and makes a large number of arrests one year. Ironically, the increase in arrest statistics will indicate that crime is getting worse in that county, even though the sheriff has actually taken more bad guys off the streets! In other words, the crime rate is up, but more bad guys are behind bars! So, it actually should be safer!

The converse is equally true! A lazy sheriff may make fewer arrests and then falsely claim credit when the crime rate appears, on paper, to go down!

So, when it comes to crime rates and statistics, I agree with Mark Twain! Crime rates and statistical reports are often just a bunch of lies!

What do you think?

Goolsby Brag Board: S.C. Law Practice!

I hope that the followers of this blog, written by an Augusta, Georgia criminal lawyer, (and former federal prosecutor), don't get too tired of reading posts about our lawyers' successes! I have one more accomplishment to boast about today!

Today, we learned that both my sons, Ric and Blake, with whom I practice law have passed the South Carolina Bar Exam, (and on their first attempt, too)! Of course, they already were licensed to practice law, here, in the State of Georgia. But now, we will be able to help clients with legal matters in BOTH states!

Since Augusta, GA is close to the state boundary with South Carolina, it made sense for us to be able to handle cases in both states. And now, we will!

Naturally, I am a very proud, fortunate father to have the opportunity to practice law with my two sons! And I can't wait until my third son, Zachary, graduates from law school and joins us in just a year! So, now you can see why we are so happy today at the Goolsby Law Firm! This is an accomplishment worth bragging about!

The Government, Peanut Butter, and Jam

[Peanut Pic from wikipedia]

Did you hear the news? According to various news reports, last week, the government indicted four former employees of the Peanut Corporation of America, including its former president, Stewart Parnell, for allegedly conspiring to sell tainted peanut products. The criminal charges reportedly center around allegations that salmonella-tainted peanut products were sold as a result of poor, unsanitary conditions at the company's Georgia peanut plant.

You will recall that the plant was shut down, and a massive peanut butter recall occurred last year, reportedly after nine people died and hundreds got sick around the country. Now, this federal criminal indictment follows.

What do you think will come of all this? Will the government get convictions? Frankly, as a former federal prosecutor for over 20 years, I don't know. I can't predict. In other words, it is difficult to predict whether the government can prove the requisite mens rea, or criminal intent. While the government may be able to prove negligence by plant operators, that may not be enough. Put another way, I believe the government will be required to show, at trial, that the defendants knowingly, or intentionally, sold tainted products. And that would be a tall order, don't you agree?

Isn't it more likely that, even assuming these folks may have been (grossly) negligent, they never intended to harm anyone? Of course, we don't know all the facts and all the defendants are entitled to their day in court.

But, in short, in my opinion, if the government cannot prove intent, the government's peanut butter indictment may be in a jam!

Secret Service Nabs Alleged Counterfeiter

[Secret Service Badge Depiction from wikipedia]

Did you know that the U.S. Secret Service has an important law enforcement function besides just protecting the President and other federal officials? In short, Secret Service agents also have jurisdiction over investigations of various federal financial crimes, including counterfeiting of U.S. currency.

Just today, according to various news reports, including one by the Atlanta Journal-Constitution, a Woodstock, Georgia man, Heath Kellogg, was indicted in Atlanta, along with five other people, for allegedly counterfeiting $1.1 million in counterfeit fifty dollar bills. One unusual feature of this case, in addition to the huge amount, is the fact that this case involves fifties. Most counterfeiting cases involve printing fake twenties or hundred dollar bills.

As a former federal prosecutor, in Augusta, Georgia, (presently, I am an Augusta, GA criminal defense lawyer), I handled a large number of counterfeiting cases over the years for Secret Service agents. In fact, my first federal trial was a Secret Service case. Thankfully, I won it! Generally, I found Secret Service agents to be very professional and thorough in their investigations.

So, now, we have talked a little bit about the fine investigative work done in counterfeiting cases by the U.S. Secret Service. Now, if only we, as taxpayers, could get them to investigate the printing and wasting of our tax dollars by the federal government!

Former New Orleans Mayor Ray Nagin Indicted on Bribery and Kickback Charges

[Photo of Former Mayor Ray Nagin from wikipedia]

Did you hear the news? According to various news reports, former New Orleans Mayor Ray Nagin was reportedly indicted today by a federal grand jury for allegedly using his former office for private gain. 

According to the reports, the federal charges include, among other things, $160,000 in bribes to Nagin and truckloads of granite for his private business in exchange for allegedly giving millions of dollars in city contracts -- post Hurricane Katrina -- to certain "preferred" businessmen. 

As a former federal prosecutor, and, currently, as an Augusta, GA criminal defense lawyer, I have seen this type of "mutual back-scratching" deal occur over and over. The names may change, but the white collar crimes stay the same!

Of course, an indictment is not evidence and the former mayor will be entitled to his day in court. It will be interesting to see what happens! What do you think?

Edwin Edwards In New Reality Show

[Gov. Edwin Edwards' Portrait from La. Sec. of State's site]

So, what does a former governor and convicted white collar criminal do following a ten year stint in a federal prison? Well, according to A&E and various news sources, they sometimes get their own reality television shows! At least, that is what is reportedly occurring in the case of former Louisiana Governor Edwin Edwards!

The flamboyant Edwards was released from prison in 2011 after serving a ten year sentence based on federal racketeering and extortion charges. That same year, following his release, the now 85 year old former governor reportedly married Trina, a 32 year old woman who had written to him while he was in prison.

And now, according to reports, A&E will produce "The Governor's Wife," which premieres in late February. What do you think? Will you tune in?

A Rant About the U.S. Department of Justice, Prosecutorial Priorities, and Small Potatoes

[U.S. Department of Justice photo from wikipedia]

As a former federal prosecutor for over 20 years and, currently, as an Augusta, GA criminal defense lawyer who regularly handles federal criminal cases, I have seen a number of changes in federal court over the years. Most of them are good. By and large, I still maintain that most federal prosecutors do a good job and that DOJ generally does an effective job of handling the prosecution of federal crimes. In short, I am still proud of my career as an AUSA and the fine job they do!

But I have noticed one disappointing trend which I wanted to blog about today. This trend involves some U.S. Attorney's Offices focusing more and more on "adopting" relatively small state criminal cases and "taking them federal," i.e. prosecuting small cases in federal court that do not belong there. In other words, in my opinion, generally, in the past, the feds focused more on larger, more complex federal cases. Today, on the  other hand, I believe some U.S. Attorneys' Offices are handling more and more relatively smaller criminal cases. Why is this so?

In my opinion, there are a number of reasons for this troubling trend. For example, some federal prosecutors find it easier to adopt and indict relatively simple state cases, instead of handling more intense federal grand jury investigations and putting together more complex federal cases from the ground up. Having handled a number of "mega" federal fraud and public corruption investigations and cases, as a former career federal prosecutor, I know fully well how difficult and time-consuming they can be to put together. But that is no excuse for AUSAs not to focus on them!

Another reason for this change in focus, in my opinion, toward smaller federal cases, originates with DOJ in Washington, D.C. In short, the Executive Office of U.S. Attorneys generally grades each U.S. Attorney's Office performance based upon the number of criminal cases prosecuted, instead of the size of the cases prosecuted. As a result, in my opinion, the various U.S. Attorney Offices around the country are, in effect, encouraged to take on more smaller, quicker prosecutions than on the more labor-intensive "mega" cases. But, in my opinion, one "mega" fraud case, which can yield millions in fines and restitution for federal programs, is often worth more than fifty "small potato" prosecutions!

Shouldn't the feds focus more on the "mega" fraud cases and leave the smaller potatoes for the states to handle? What do you think?

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

[Depiction of Cash 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 example of the many kickbacks, or rewards, paid in this case included payments for the other company's employee to purchase TWO vacation homes. In short, the construction company paid money toward his purchase of an $800,000 log cabin at a Minnesota lake and another $150,000 for the employee to purchase a condo at an exclusive winter ski resort in Whistler, British Columbia.

Of course, in return, the employee of the other company "scratched the back" of the construction company president by approving millions of dollars in construction projects.

As you can see, sometimes white collar crime pays pretty good; that is, until, like these defendants, you get caught!