Articles Tagged with Federal crime

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French developer Aurélien Michel is charged with Fraud for alleged $ 2.9 NFT’s rug pull

On January 4, 2023, French footballer, Aurélien Michel, was arrested by US authorities as he passed through JFK airport.

He was immediately taken into custody and brought before a federal judge in Brooklyn, where he was arraigned on a complaint charging him with being the leader of a scheme involving NFT fraud. He posted bail on February 1, 2023 and has been at liberty in the U.S. since that time. 

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Federal prosecutors sometimes have a powerful statute to use against drug sellers whose products cause fatal overdoses. Specifically, 21 U.S.C. Section 841 – the most common federal narcotics distribution charge – includes enhanced penalties for situations in which the defendants have sold or distributed narcotics that caused overdose deaths. A charge with no mandatory minimum under normal circumstances might carry a 20-year minimum where it can be proven that the drug that was sold caused someone to die. Some prior felons can also face potential mandatory life sentences for selling narcotics that cause fatalities. Even in a case in which the prosecution may not be able to prove beyond a reasonable doubt that the narcotics caused a death, the prosecution may be able to secure a very stiff sentence under the federal Sentencing Guidelines, where the evidence proves by a preponderance of the evidence that the defendant’s product is responsible.

First, the government has to prove that the defendant actually sold drugs to the deceased person. Law enforcement frequently uses text messages and phone records to prove transactions in these cases. Law enforcement also frequently attempts to purchase narcotics themselves (undercover) from the target/suspect. That way, in the very least, the government can prove a charge of 21 U.S.C. Section 841, if not the overdose aspect.

Many drug overdoses are polydrug situations, meaning that the deceased person ingested more than one drug recently. In those cases, it can be more complicated to ascertain the precise “but for” cause of death. Certain drugs may interact with each other in unclear ways, and other drugs may work together in aggregate towards the same toxidrome. It is critical to have the assistance of a toxicological expert and an attorney familiar with some of the issues in overdose analysis. Many if not most of the federal prosecutions in this sphere nowadays involve fentanyl, and that drug is indeed far more potent, prevalent and deadly than most others. But that doesn’t mean that fentanyl – even when it shows in the victim’s bloodwork – is always the but for cause of death.

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Platinum selling rap artist Fetty Wap (real name Willie Junior Maxwell II) was arrested and arraigned on October 29 pursuant to a federal indictment charging him and five other men with Conspiracy to Distribute Narcotics (the other five men were also charged with Use of Firearms in Connection with a Drug Crime). The charges are incredibly serious and Fetty Wap faces very significant jail time.

According to a press release from the U.S. Attorney’s Office for the Eastern District of New York, the rapper and five other men trafficked in significant quantities of heroin, cocaine, and the especially-dangerous drug, fentanyl. The defendants (including Anthony Leonardi, Robert Leonardi, Brian Sullivan, Anthony Syntje, and Kavaughn Wiggins) have all been arrested and detained pending trial. Prosecutors claim to have recovered at least 16 kilograms of cocaine, 2 kilograms of heroin, and fentanyl, though it is certain that they will allege that the group is responsible for far more than that. Indeed, the press release describes the amount of drugs trafficked by the crew as “massive”.

Fetty Wap is unlikely to be released on bail pending trial, though it may be possible given his likely financial resources. However, in federal narcotics cases of this size and scale, the presumption for judges is that a defendant should be detained pending trial. Fetty Wap would have to convincingly demonstrate that he does not pose a risk to the public, and that he would not flee if released on bond. Given his resources (and possible ability to live abroad), the amount of prison time that he is potentially facing, the fact that his codefendants are indicted for using firearms, and the fact that he allegedly trafficked in fentanyl, which is notorious for causing fatal overdoses, it seems unlikely that he will be bailed out pending trial.

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Earlier this week, a Canadian woman from Quebec named Pascale Ferrier was arrested by American border agents crossing into the United States near Buffalo, New York. She was wanted by law enforcement for allegedly sending an envelope containing ricin to the White House. (Ricin is a potentially lethal poison) The envelope was addressed to President Donald Trump and contained a note calling him, among other things, an “Ugly Clown Tyrant”. Fingerprints from the package sent to the President matched fingerprints on file from Ms. Ferrier’s previous incarceration in Texas. The letter and its contents also appear to match several other letters sent to prison officials in Texas, which also appear to have contained ricin. At the time of her arrest, Ms. Ferrier also allegedly had a firearm in her waistband.

For now, Ms. Ferrier is charged in a D.C. federal court with one count of violating 18 U.S.C. Section 871 (Threats against the President). Among other things, this charge makes it illegal for a person to knowingly deliver a letter containing a threat to take the life of the American President. The maximum penalty for this charge is 5 years in prison.

Ms. Ferrier is likely to face additional charges soon, however. For example, should law enforcement choose to charge her for the threatening letters she might have sent to the officials in Texas, she could face several counts of 18 U.S.C. Section 2332b (Acts of terrorism transcending national boundaries). Basically, if a person attempts to kill an official of a U.S. government agency through the mail in a manner transcending national boundaries, then that person can be charged with this crime. Those charges would carry potential life sentences.

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Two men in Rhode Island were recently arrested and charged by federal prosecutors with attempting to defraud the Small Business Administration (SBA) of over $500,000 by purportedly submitting a false application for relief funds earmarked for small business owners through the Coronavirus Aid, Relief and Economic Security (CARES) Act. Given the increasing desperation of many small business owners during the pandemic and quarantine, as well as the significant amount of federal funding being made available, one can expect more such prosecutions to occur in the near future.

According to a Department of Justice press release, David Butziger and David Staveley sought over half a million in forgivable loans for various businesses that either were no longer operating, for which they had no employees, or in which they held no ownership stake. Though they have not yet been indicted, they have been charged by way of criminal complaint Conspiracy to Make a False Statement to Influence the SBA (18 U.S.C. § 371), Conspiracy to Commit Bank Fraud (18 U.S.C. § 1349), and Bank Fraud (18 U.S.C. § 1344[2]). Though it is difficult to estimate the prison penalties they may be facing, a fraud involving $500,000 might put them at an offense level of 18 for purposes of the Federal Sentencing Guidelines. As such, they might be facing a Guideline sentence of 18-24 months in prison following a guilty plea. However, there is no statutory minimum sentence, so they could receive in theory receive probation.

This arrest and prosecution should serve as a serious warning to any small business owners considering submitting false or exaggerated applications. However, it will be interesting to see whether the federal authorities will start making arrests or threatening to prosecute individuals whose applications might contain sloppy mistakes rather than outright falsehoods. Without the assistance of a competent accountant, or with a fluctuating and/or seasonal payroll, one could easily envision a small business owner submitting an “honest” application that raises eyebrows from SBA administrators.

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A charge of 18 USC Section 924(c) for using or possessing a firearm in the course of drug trafficking or some other violent crime is a common criminal charge in federal court. The charge also carries very significant potential penalties that must run consecutive any other sentences imposed for other related crimes. Thus, if you or a loved one have been arrested or indicted for this crime, you should seriously consider retaining an aggressive and experienced federal criminal defense attorney like Matthew Galluzzo.

The statute reads as follows (18 U.S.C. § 924(c)(1)):

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The criminal defense attorneys at the Law Office of Matthew Galluzzo have successfully represented many people charged with wire fraud in federal court. This serious accusation can result in very significant penalties, including huge fines and lengthy prison sentences. However, these charges are also frequently quite defensible, too. As such, if you or a loved one have been accused by federal prosecutors of money laundering, you should strongly consider contacting The Law Office of Matthew Galluzzo’s team of former prosecutors.

The crime of wire fraud occurs when someone voluntarily and intentionally uses an interstate communications device (such as a telephone) as a part of any scheme to defraud another of property, or anything else of value.

The main criminal statutes that apply to wire fraud are 18 U.S.C. §§ 1343 and 1349. Those statues refer to fraud by wire, radio, or television.

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From at least in or about January 2016, up to and including July 2018, in New York and New Jersey, Mikuki Suen, 43, Jian Min Huang, 42, Songhua Qu, 54, Kin Lui Chen, 53, and Fangrang Qu, 31 and others known and unknown allegedly smuggled hundreds of thousands of pairs of fake Nike Air Jordan sneakers. The five accused fake-shoes traffickers were arrested for having counterfeited over $70 million in Fake Nike shoes and sold them to buyers on the U.S. market. The NYPD and the Department of Homeland Security received the help of a confidential source who helped make numerous purchases during the investigation. This confidential source has been a law enforcement source for approximately two years.

Nike’s Air Jordan line of sneakers are some of the most popular and expensive athletic shoes in circulation. Nike has released a different Air Jordan model almost every year since the shoe line was first introduced in 1984. Many of these models are known by their model number, like the Air Jordan XIII, the 13th model, and some models are known by the year of introduction, like the Air Jordan 2009. Air Jordan sneakers can cost from approximately 100$ to the thousands of dollars, depending on color and design.

More than 42 containers carrying nearly 400 000 pairs of the trendy fake sneakers traveled from factories in China to Port Newark.  These sneakers were produced to resemble Air Jordan sneakers in design and color but are “generic” (the “Generic Air Jordan”). They were imported into the U.S. without the inclusion of logos that are trademarks registered with the United States Patent and Trademark Office (“USPTO”). Once the Generic Air Jordan arrived in the U.S., they were altered within the New York area to add trademarked logos to the shoes in warehouses in Queens and Brooklyn. Once this alteration took place, the shoes were considered “counterfeit”. Finally, the Counterfeit Sneaker Ring processed with the distribution of the fake shoes within the U.S. at a significant profit.

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Most people do not realize that it is a federal crime to lie to a federal law enforcement agent. However, 18 U.S.C. § 1001 makes it a federal felony, punishable by up to five years in prison (or 8 years for a case involving terrorism), to “knowingly and willfully falsify, conceal, or cover[] up any trick, scheme or device a material fact… or make[] any materially false, fictitious, or fraudulent statement or representation” in regards to a federal law enforcement investigation. It also prohibits the knowing and willful making or using of any “false writing or documents containing the same to contain any materially false, fictitious, or fraudulent statement or entry.” Thus, for example, a criminal suspect who lies when questioned by an FBI agent can be guilty of a serious crime, even if that suspect is not actually guilty of the underlying crime for which he was being investigated. This situation often arises when people who have received subpoenas from law enforcement agents unfortunately sometimes agree to speak with agents or prosecutors but then make statements that those agents later discover to be untrue.

Most of the time however, people accused of this crime are frequently also charged with other crimes, too. For example, this charge is frequently brought against those who lie to U.S. Customs officials about their possession of cash, in conjunction with a charge of 31 USC § 5361(a)(1)(A). It is also common in health care fraud matters for a defendant to be charged with violating both 18 U.S.C. § 1035 – making false statements relating to health care matters – as well as 18 U.S.C. § 1001. In any case, the additional charge for making false statements may not be as serious as the underlying crime for which the defendant was originally investigated, but the fact that the defendant lied to law enforcement can be viewed as an “aggravating factor” by the judge at sentencing, meaning that it could seriously increase the ultimate sentence that the defendant will serve.

Though the maximum possible statutory penalty for this offense is five years in prison, pursuant to the Federal Sentencing Guidelines, the base offense level for this crime is 6. This base offense level means that a person convicted of this crime (and this crime alone) is more likely to receive a sentence of between 0 to 6 months in prison.

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Delayed flights, crowded airplanes, rude people, and stressful rides to the airport can make airline travel particularly stressful. Sometimes, rude flight attendants or passengers fueled by alcohol can cause tempers to flare, and physical fights sometimes erupt during the flight. These fights or disputes can result in federal criminal charges, as “the special maritime jurisdiction” of federal courts applies to airplanes coming into the United States or traveling across state lines.

Federal assault charges can apply to any person who causes an offensive physical touching to another person on the airplane. Certainly, that can apply to physical violence, but it might also apply to unwanted sexual touching of another person as well. Assaulting another person on an airplane is normally a petty offense under federal criminal law, pursuant to 18 U.S.C. § 113(a)(5). (Those accused of sexually assaulting others on airplanes can also be prosecuted with the more serious felony charge of 18 U.S.C. § 2244(b), however, and attempts to maim or murder can be prosecuted as felonies, as well). That means that the crime is a misdemeanor with a maximum prison penalty of six months and/or a fine of $5000.00. Also, it means that the defendant is not entitled to a jury trial. Instead, the defendant must have his case tried by a federal magistrate judge.

Locating and interviewing witnesses in these cases is of paramount importance to the defense. Occasionally, shaky cell phone video footage might be available of the incident or dispute, and it may actually vindicate the accused person. Sometimes defendants have even acted unknowingly or unintentionally, by virtue of intoxicated or sleep disorders, and such defense should be explored and developed if applicable.

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