Federal Criminal Defense Blog

6th Circuit Court of Appeals Undoes Amazingly Soft 1 Week Sentence for CEO Convicted in $18 Million Fraud

Anthony Lake — Thu, 16 May 2013 16:01:09 +0000

Michael Peppel, the former CEO of MCSi Inc., based in Dayton, Ohio, was convicted on charges of conspiracy, fraud, and money laundering for a scheme which defrauded investors of $18 million. Peppel allegedly cooked MCSi’s books to cause its stock value to remain high.

Peppel faced between eight to 10 years’ imprisonment. However, according to the Columbus, OH, Republic, in 2011, the U.S. District Court for the Southern District of Ohio sentenced Peppel to one week in prison. All the Blog can say is: well done indeed, Mr. Peppel.

In fairness to the District Court, District Court Judge Sandra Beckwith found Peppel to be “a remarkably good man.” Peppel defended that he had made misrepresentations to MCSi’s investors in an effort to save the company. He pleaded the fact that his family depends on him, and his community service work helping convicted felons find work to the Court.

As you probably guessed would happen, in February, the U.S. Court of Appeals for the Sixth Circuit overturned Peppel’s sentence as “drastically light.” The District Court is set to hand down a new sentence on June 4.

“Discourage litigation. Persuade your neighbors to compromise whenever you can. As a peacemaker the lawyer has superior opportunity of being a good man. There will still be business enough.” — Abraham Lincoln

Gillen Withers & Lake LLC are experienced trial attorneys who vigorously represent or defend their clients and who have achieved outstanding results for their clients. Contact us in North Georgia (404) 842-9700 (aclake@gwllawfirm.com) or South Georgia (912) 447-8400 (twithers@gwllawfirm.com) to consult on your matter.

4th Circuit Court of Appeals Overturns Money Laundering Convictions in $100 Million Life Insurance Investment Scheme

Anthony Lake — Mon, 06 May 2013 13:02:06 +0000

Adley H. Abdulwahab was convicted of fraud, conspiracy, and money laundering in 2011 in the U.S. District Court for the Eastern District of Virginia relating to a $100 million life insurance settlement scheme which defrauded more than 800 investors. As reported by the Fort-Worth Star-Telegram, Abdulwahab, a Texas resident, and four other co-conspirators fraudulently marketed life settlements–the purchase of life insurance policies by investors–to his victims, most of whom were elderly, through Abdulwahab’s company, A&O Resource Management Ltd. The conspirators made misrepresentations to investors regarding A&O’s prior success, its size and office locations, its number of employees, the risks of its investment offerings, and its safekeeping and use of investor funds. Abdulwahab was originally sentenced to 60 years in prison.

Last week, the 4th Circuit Court of Appeals overturned Abdulwahab’s money laundering convictions and ordered that he be re-sentenced, in the case of U.S. v. Abdulwahab, Docket No. 11-5093, the opinion in which may be read here. The convictions were based upon commissions which A&O paid to a sales agent. The Court held that Abdulwahab’s convictions under the money laundering statute, 18 U.S.C. 1956, were barred as a result of “merger.” Citing the U.S. Supreme Court’s decision in U.S. v. Santos, 553 U.S. 507 (2008), the Court cited the rule that the term “proceeds” in the money laundering statute only refers to the “net profits,” and not the “gross receipts,” of the underlying crime and that an individual therefore cannot be convicted of money laundering for “paying the expenses” of a crime.

“It is the spirit and not the form of law that keeps justice alive.” — Earl Warren

Start the process of resolving your case or matter today by calling the experienced and aggressive attorneys of Gillen Withers & Lake LLC. Contact us in North Georgia (404) 842-9700 (aclake@gwllawfirm.com) or South Georgia (912) 447-8400 (twithers@gwllawfirm.com) to consult on your matter.

Atlanta Resident Jessica Loren Posey Recieves 7 Years for Sex Trafficking Involving Minors

Anthony Lake — Wed, 01 May 2013 15:31:41 +0000

Atlanta resident, Jessica Loren Posey, 25, was sentenced on Monday in the U.S. District Court for the Northern District of Georgia to serve more than 7 years in prison for transporting a 16 year-old girl across State lines for the purpose of prostitution, as reported by the Gwinnett Patch. Posey was charged with transporting a minor who Posey met in 2010 when the girl was 16, as well as other minors, within Georgia as well as to Tennessee, Kentucky, and Ohio in order to engage in sex acts. Posey created advertisements featuring the minor, which she displayed online.

Atlanta has grown into a hub for sex trafficking of minors in the U.S. To learn more about this serious problem, visit INnocence ATLanta or Street Grace.

“There must be law, steadily invoked and respected by all nations, for without law, the world promises only such meager justice as the pity of the strong upon the weak.” — Dwight D. Eisenhower

Sixth Circuit Reduces Sentence of Detroit Arsonist, Limited by Plea Agreement

Anthony Lake — Fri, 26 Apr 2013 14:15:29 +0000

In 2010, Sam Wright and an accomplice, Calvin Jones, set fire to a commercial building on the east side of Detroit. The fire paralyzed one firefighter and injured six others who responded to the scene.

Wright was charged in the U.S. District Court for the Eastern District of Michigan, entered a plea agreement with the government, and was sentenced in 2011 to 15 years in prison. On Wednesday, the U.S. Court of Appeals for the Sixth Circuit reversed Wright’s sentence, finding that Wright’s plea agreement included a 7 year maximum which limited the amount of time he could be sentenced to.

“The law is reason, free from passion.” — Aristotle

The attorneys of Gillen Withers & Lake LLC provide thorough counsel and get right to work on your legal matter, no matter what it is. Contact us in North Georgia (404) 842-9700/aclake@gwllawfirm.com, or South Georgia (866) 416-8333 (toll-free)/(912) 447-8400/twithers@gwllawfirm.com.

Wife of Convicted U.K. Terrorist Acquitted, Thought Husband Was Using Jihad as Excuse Not to Get Back Together

Anthony Lake — Sat, 20 Apr 2013 18:15:34 +0000

As the U.S. is recovering from the shock of last week’s bombings of the Boston Marathon, yesterday, Salma Kabal was acquitted in the Woolwich Crown Court in Southeast London, United Kingdom, on charges that she withheld information from police concerning a terror plot involving her estranged husband, Ashik Ali.

Ali, along with Irfan Nasser and Irfan Khalid, the Birmingham “Gang of Three,” were convicted in February for plotting to use bombs in rucksacks with timers to bomb locations in London which the plotters hoped would cause greater casualties than the London bombings of July 7, 2005, which killed 52 people, and perhaps even the September 11, 2001, attacks in the U.S. The men intended to place the explosives in crowded stations and shopping centers to “take out” as many as they could. Nasser and Khalid spent 15 months at terrrorist training camps in Pakistan. The conspirators were arrested in September of 2011 while constructing rucksack bombs at a safe house in Birmingham, England. At the trial of the trio, testimony was presented that they had financed their terrorist activities by raising more than £13,000 in bogus Muslim Aid collections. The men are expected to be sentenced in May, and are expected to receive life imprisonment.

The primary evidence against Ms. Kabal was a secretly recorded conversation between her and Ali, in which he told Ms. Kabal that they could not be together, advised her to have nothing to do with him, and warned her that her family’s home could be raided as a result of his activities. Prosecutors argued that the conversation showed that Ms. Kabal must have known that Ali was engaged in illegal activity. Ms. Kabal defended at trial that she thought her husband was just using jihad as an excuse not to get back together with her, and that he had found another woman.

“All, too, will bear in mind this sacred principle, that though the will of the majority is in all cases to prevail, that will to be rightful must be reasonable; that the minority possess their equal rights, which equal law must protect, and to violate would be oppression.” — Thomas Jefferson

Contact the attorneys of Gillen Withers & Lake LLC in North Georgia (404) 842-9700 or South Georgia (866) 416-8333 (toll-free)/(912) 447-8400 on your civil or criminal legal matter.

6th Circuit Court of Appeals Reverses Convictions in $7 Million Fraud Case for Speedy Trial Violations

Anthony Lake — Thu, 18 Apr 2013 03:35:39 +0000

Yesterday, as reported in The Republic, the 6th Circuit Court of Appeals in Detroit reversed the convictions of Michael Heshelman and Bryce Sherwood of Battle Creek, Michigan, who had been serving sentences of imprisonment for defrauding investors of approximately $7 million, including $2.5 million from the family of a pastor. The reason–the Speedy Trial Act of 1974, 18 U.S.C. 3161 et seq., which provides that, generally, a defendant must be tried within 70 days of the indictment or the defendant’s first appearance in court, whichever is later. The Government obtained an indictment against Heshelman in 2006, but did not arrest him until 2009, since Heshelman was living in Switzerland at the time. Heshelman was convicted and was serving a 17 year sentence when his convictions were reversed.

The Court held that the Government failed to demonstrate that it would have been too difficult extradite Heshelman from Switzerland to the U.S. It also held that, while Sherwood pled guilty to a conspiracy charge, the government also violated his Speedy Trial rights by waiting 39 months to bring him to trial.

“There are 4 kinds of Homicide: felonious, excusable, justifiable, and praiseworthy.” ― Ambrose Bierce

Criminal, civil, or administrative, you have a ready ear for any problem or issue in the attorneys of Gillen Withers & Lake LLC. Contact us in North Georgia (404) 842-9700/aclake@gwllawfirm.com, or South Georgia (866) 416-8333 (toll-free)/(912) 447-8400/twithers@gwllawfirm.com.

9th Circuit Reverses CA City Treasurer’s “Honest Services Fraud” Convictions

Anthony Lake — Thu, 18 Apr 2013 02:53:24 +0000

On Monday, the U.S. 9th Circuit Court of Appeals ordered Albert Robles, former Treasurer for South Gate, California, acquitted on three charges for “honest services fraud,” 18 U.S.C. 1346, which Mr. Robles had been convicted on in 2006. The Court also reversed the honest services conviction of Robles’ business associate, George Garrido. The reversals were based upon the U.S. Supreme Court’s decision in U.S. v. Skilling, 130 S. Ct. 2896 (2010), in which the Supreme Court held that 18 U.S.C. 1346, which prohibits fraudulent deprivations of “the intangible right of honest services,” is limited to bribery and kickback schemes.

Robles was prosecuted for taking nearly $2 million in bribes from contractors.

The Court held that the jury was wrongly instructed at trial that it could convict Robles by finding that he failed to disclose financial conflicts of interest. It left Robles’ conviction for bribery intact. The story was reported at Silicon Valley MercuryNews.com.

“Justice in the life and conduct of the State is possible only as first it resides in the hearts and souls of the citizens.” — Plato

Put our Atlanta and Savannah attorneys aggressively to work on your legal matter, whatever it may be. Call Gillen Withers & Lake LLC in either North Georgia (404) 842-9700, or South Georgia (866) 416-8333 toll-free, or (912) 447-8400.

Three Jacksonville, FL, Physicians Acquitted in Multimillion Dollar “Pill Mill” Prosecution

Anthony Lake — Tue, 16 Apr 2013 16:55:46 +0000

Three Jacksonville, Florida, physicians, Todd Perla, Marc Tafflin and Anthony Posca, as well as a co-defendant, Jason Votrobek, were acquitted last Thursday following a three-week trial in the U.S. District Court for the Middle District of Florida in a multimillion dollar “pill mill” prosecution, as reported in the Florida Times-Union. The doctors were charged with conspiracy to manufacture and distribute controlled substances and money laundering for writing thousands of prescriptions for Oxycodone and Xanax for patients at three clinics, Jacksonville Pain and Urgent Care, Duval Wellness, and Urgent Care. Patients came to the clinics from States including Tennessee, Kentucky, and Ohio. One patient, Robert Lee Johnson, allegedly overdosed from Oxycodone in 2010. Profits from the three clinics routinely exceeded $40,000 on a daily basis.

The defendants defended at trial that they had no knowledge that the owner of the clinics, Zachary Rose, was engaged in unlawful activity. A fifth defendant, Theodore Enquist, a mid-level manager, was granted a directed verdict before the case went to the jury. Rose, as well as five other defendants, previously pled guilty to drug conspiracy charges. The clinics have since closed.

“I busted a mirror and got seven years bad luck, but my lawyer thinks he can get me five.” -Steven Wright

Get some peace of mind regarding that legal matter you’ve been meaning to address. Call us in North Georgia (404) 842-9700 or South Georgia (866) 416-8333 toll-free, or (912) 447-8400.

Acquitted Hutaree Militia Members File Suit Against FBI, FBI Agents and State Officers

Anthony Lake — Mon, 15 Apr 2013 21:17:51 +0000

As set forth in the Chicago Sun-Times, Thomas Piatek, Michael Meeks, and others who, as we noted, were acquitted a year ago in the prosecution of the “Hutaree” militia for conspiring to commit acts of terrorism, filed suit last month against the FBI, FBI agents and Michigan State police officers. The plaintiffs’ suit alleges that defendant FBI Special Agent Stephen Haug gave misleading information to his co-defendants, FBI Special Agent Christopher Allen, FBI Special Agent Leslie Larsen, and Police Sergeant Sandra Larsen, which law enforcement officers used to secure search warrants to search Piatek’s and Meeks’ homes. The plaintiffs claim that no reasonable law enforcement officer would have executed the warrant, and seek damages from the defendants.

An undercover FBI agent infiltrated the Hutaree and recorded the group discussing plans to kill a police officer and then to kill more law enforcement officers at the officer’s funeral. However, the defendants maintained at trial that the talk was just talk, and that they did not intend to go forward with the alleged plan.

If you or a family member are facing a criminal matter, or have a civil matter in need of expert representation, contact our offices in Atlanta and Savannah.

Brooklyn, NY, Woman Acquitted in $71 Million Medicare Fraud Prosecution

Anthony Lake — Mon, 15 Apr 2013 04:25:27 +0000

Yelena Galper was charged in 2011 in the U.S. District Court for the Eastern District of New York with engaging in a health care fraud and money laundering conspiracy which allegedly laundered proceeds from Medicare at three medical clinics in the Brooklyn, New York, area, Bay Medical Care, PC; SVS Wellcare Medical PLLC, and SZS Medical Care PLLC. The Government alleged that Ms. Galper and others billed Medicare for a total of $71 million in services which were not medically necessary, paid kickbacks clinic owners as well as to Medicare beneficiaries in exchange for using the beneficiaries’ identities, and opened bank accounts in the names of phony corporations.

After a 7 week trial, the jury acquitted Ms. Galper last week, according to the Wall Street Journal’s Market Watch. Ms. Galper’s primary defense was that alleged accounts in her name were opened without her knowledge and that she was falsely listed as president of certain corporations without her knowledge.

Let us start working on resolving your legal matter today. Contact us at (404) 842-9700 in North Georgia or (866) 416-8333 (toll-free)/(912) 447-8400 in South Georgia.