White Collar Crime Prof Blog

U.S. v. Rigas - Affirmed on Appeal

A jury convicted John and Timothy Rigas of conspiracy, bank fraud and securities fraud (they were acquitted of wire fraud).  The Second Circuit then "affirmed the convictions on all counts except one count of bank fraud" and recommended a resentencing. Their sentences were ultimately reduced to 12 and 17 years.  Being re-examined by the Second Circuit Court of Appeals, the court looked at the reasonableness of the sentences and found that the sentences were not procedurally or substantively unreasonable. The court, in speaking about the sentences, stated that they "do not constitute a 'manifest injustice' or 'shock the conscience,' and do not otherwise compel a conclusion that they are substantively unreasonable." See opinion here; See also Doug Berman's Sentencing Law & Policy Blog here.  For background and Brief of Appellants - see here.

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100 Year Sentence in White Collar Case

Convicted of three counts of mail fraud, three counts of wire fraud and one count of money laundering, netted a Ponzi scheme operator with what the U.S. Attorney for the Central District of California is calling the "longest sentence ever handed down in a white-collar case in this district."  And most likely it is the longest sentence in a good number of districts. The U.S. Attorney's Press Release states that the scheme collected "$60 million from hundreds of investors – and caused more than $39 million in losses." In addition to a sentence of 100 years, the court ordered "$35,479,310 in restitution to the approximately 600 victims who lost money as a result of the scam."  The DOJ Press Release also states that "[i]nvestors were promised returns of up to 14 percent every two or three months, at which time investors could either receive their investments back or roll over their investments into the next investment period."  Unlike the defendant, who represented himself at trial, three sales agents plead guilty and " received sentences of up to six years in federal prison." 

(esp)(blogging from Los Angeles)

In the News & Around the Blogosphere

John Eligon, NYTimes, Brooke Astor’s Son Guilty in Scheme to Defraud Her

Mark Hamblett, NYLJ, law.com, Former Paul Hastings Tax Associate Spared Prison for Insider Trading (hat tip to Bill Olis) 

Brian Prince, eweek.com, Federal Investigation Nets 100 in Phishing Scheme

60 MInutes, Marc Dreir, The Swindler

US Supreme Court, Cert Denied - 08-1172, Nacchio, Joseph P. v. United States here

David Phelps, Star Tribune, Petters case: Hedge fund manager pleads guilty

DOJ Press Releases, Detroit Clinic Owner, Doctor and Office Manager Indicted in Medicare Infusion Fraud Scheme

DOJ Press Release, Seattle Area UBS Client Pleads Guilty to Filing a False Tax Return

DOJ Press Release, Former Stock Promoter Pleads Guilty in Manhattan Federal Court to Bribery Scheme

DOJ Press Release, Manhattan U.S, Attorney Charges Twelve in Massive Mortgage Fraud Scheme

Martha Neil, ABA L.J., Lawyer Pleads in Appraisal Bribe Scheme; Prosecutors Seek $3.2M Restitution

(esp)(blogging from Los Angeles)