Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

Michael Lawrence Rosebar was convicted of multiple counts of bankruptcy fraud, wire fraud, and first-degree fraud after misrepresenting himself as a licensed home improvement contractor and misappropriating funds from homeowners over a seven-year period. Following a jury trial in the United States District Court for the District of Columbia, Rosebar was found guilty on several counts and sentenced to 120 months of imprisonment and thirty-six months of supervised release. His sentence was calculated using a criminal history category of II, which included two status points for committing the offenses while on probation.Rosebar appealed his conviction, but the United States Court of Appeals for the District of Columbia Circuit affirmed the district court’s judgment. After the Sentencing Commission amended the United States Sentencing Guidelines with Amendment 821, which changed the calculation of status points for defendants with fewer criminal history points, Rosebar filed a motion in the district court seeking a sentence reduction under 18 U.S.C. § 3582(c)(2) and USSG § 1B1.10. The district court found Rosebar eligible for a reduction but, after considering the factors in 18 U.S.C. § 3553(a), denied the motion, citing the seriousness of his offenses, their impact on victims, and his lack of remorse.On appeal, the United States Court of Appeals for the District of Columbia Circuit reviewed the district court’s denial for abuse of discretion. The appellate court held that the district court properly followed the required two-step inquiry, considered all relevant factors, and did not abuse its discretion in denying the sentence reduction. The court affirmed the district court’s order denying Rosebar’s motion for a sentence reduction. View "USA v. Rosebar" on Justia Law

Rowena Joyce Scott served as both the president of the board and general manager of Park Southern Neighborhood Corporation (PSNC), a nonprofit that owned a large apartment building in Washington, D.C. During her tenure, Scott exercised near-total control over PSNC’s finances and operations. She used corporate funds for personal expenses, including luxury items and services, and made significant cash withdrawals from PSNC’s accounts. After PSNC defaulted on a loan, the District of Columbia’s Department of Housing and Community Development intervened, replacing Scott and the board with a new property manager, Vesta Management Corporation, which took possession of PSNC’s records and computers. Subsequent investigation by the IRS led to Scott’s indictment for wire fraud, credit card fraud, and tax offenses.The United States District Court for the District of Columbia presided over Scott’s criminal trial. Scott filed pre-trial motions to suppress statements made to law enforcement and evidence obtained from PSNC’s computers, arguing violations of her Fifth and Fourth Amendment rights. The district court denied both motions. After trial, a jury convicted Scott on all counts, and the district court sentenced her to eighteen months’ imprisonment, supervised release, restitution, and a special assessment. Scott appealed her convictions, challenging the sufficiency of the evidence and the denial of her suppression motions.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that Scott forfeited her statute of limitations defense by not raising it in the district court. It found the evidence sufficient to support all convictions, including wire fraud and tax offenses, and determined that Scott was not in Miranda custody during her interview with IRS agents. The court also concluded that the search warrant for PSNC’s computers was supported by probable cause, and that Vesta’s consent validated the search. The court affirmed the district court’s judgment in all respects. View "United States v. Scott" on Justia Law

Ngozi Pole, who served as office manager for Senator Edward Kennedy from 1998 to 2007, was responsible for overseeing the office budget and handling staff bonuses. Between 2003 and 2007, Pole awarded himself substantial, unauthorized bonuses without approval from the Senator or his chief of staff. The scheme was discovered in late 2006 when Pole sought a departure bonus, which he also awarded himself without authorization. After an internal inquiry, the matter was referred to the FBI, leading to Pole’s indictment on five counts of wire fraud and one count of theft of government property.Following a three-week trial in the United States District Court for the District of Columbia, the jury found Pole guilty on all counts. The court sentenced him to 20 months in prison and ordered restitution of $75,042.37, representing the total unauthorized bonuses minus a small recovered amount. On his initial appeal, the United States Court of Appeals for the District of Columbia Circuit remanded the case for the district court to consider Pole’s claim of ineffective assistance of counsel and vacated the restitution order for lack of factual findings. On remand, the district court rejected the ineffective assistance claim and reinstated the restitution order after making the necessary findings.On renewed appeal, the United States Court of Appeals for the District of Columbia Circuit affirmed the district court’s rulings. The court held that, even assuming counsel’s performance was deficient, Pole failed to show prejudice as required by Strickland v. Washington, given the overwhelming evidence of guilt and the limited impact of the alleged errors. The court also held that, under the Mandatory Victim Restitution Act, restitution could include all losses from the fraudulent scheme, not just those tied to the specific counts of conviction, and found the restitution amount supported by the evidence. The judgment of the district court was affirmed. View "United States v. Pole" on Justia Law

David Paitsel, a former FBI Special Agent, was given at least $6,500 by his friend, Brian Bailey, after providing Bailey with information about certain residential tenants. Paitsel obtained this information from the FBI’s access to the non-public Thomson Reuters information system known as CLEAR, by representing that his searches were for FBI law enforcement investigative purposes. The primary issue in this appeal is whether Paitsel’s conduct constituted bribery under 18 U.S.C. § 201(b)(2)(C), which prohibits public officials from agreeing to accept valuable compensation in exchange for performing an “official duty.”The United States District Court for the District of Columbia indicted Paitsel for various bribery offenses, including conspiracy to commit bribery and bribery in violation of his “official duty.” The evidence presented at trial established that Bailey sought to identify tenants whose property was for sale and had begun to proceed through the Tenant Opportunity to Purchase Act (TOPA) process. Bailey paid Paitsel for tenants’ information, which Paitsel obtained by searching the CLEAR database. The jury found Paitsel guilty of both conspiracy to commit bribery and bribery. The District Court denied Paitsel’s motion for a judgment of acquittal and sentenced him to two years’ incarceration.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that the Government proved beyond a reasonable doubt that Paitsel’s conduct fell within his official duties because he performed an act made possible by his official position in the FBI and his affirmative representation that his conduct was part of official FBI law enforcement investigative duties. The court also rejected Paitsel’s other challenges, including a purported instructional error and the sufficiency of the Government’s quid pro quo evidence. The court affirmed Paitsel’s convictions and sentence. View "USA v. Paitsel" on Justia Law

Keith Berman, the appellant, pleaded guilty to securities fraud, wire fraud, and obstruction of proceedings related to a scheme to fraudulently increase the share price of his company, Decision Diagnostics Corp. (DECN). Berman issued false press releases claiming DECN had developed a blood test for coronavirus, which led to a significant increase in the company's stock price. The Securities and Exchange Commission (SEC) investigated and suspended trading of DECN's stock, revealing that Berman's claims were false. Despite this, Berman continued to issue misleading statements and used aliases to discredit the SEC's investigation.The United States District Court for the District of Columbia sentenced Berman to 84 months' imprisonment. The court calculated the loss caused by Berman's fraud using the modified rescissory method, determining a loss amount of $27.8 million. This calculation was based on the difference in DECN's stock price before and after the fraud was disclosed, multiplied by the number of outstanding shares. The court also applied enhancements for sophisticated means and substantial financial hardship to five or more individuals, resulting in a Guidelines range of 168 to 210 months, but ultimately imposed a downward variance.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. Berman challenged the district court's calculation of the loss amount, arguing that the fraud was disclosed earlier and that the loss was not solely attributable to his fraudulent statements. The appellate court found that the district court did not commit clear error in determining the disclosure date or in its loss causation analysis. The court also upheld the enhancements for sophisticated means and substantial financial hardship, finding sufficient evidence to support these determinations. Consequently, the appellate court affirmed the district court's judgment. View "United States v. Berman" on Justia Law

Roberto Adams, a police officer, was convicted of wire fraud and money laundering related to the misuse of a small-business loan he received under the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief, and Economic Security Act. Adams did not testify at his trial, and his counsel requested a jury instruction to not draw any adverse inference from this decision. The district court agreed but inadvertently omitted the instruction. Adams' counsel failed to object until after the jury's verdict, which led to a motion for a new trial.The United States District Court for the District of Columbia granted Adams' motion for a new trial, finding that the omission of the no-adverse-inference instruction was plain error and prejudicial. The court noted that the government's case relied heavily on circumstantial evidence to prove Adams' knowledge and intent, and the jury's split verdict indicated that the case was close. The court concluded that the error likely affected the outcome of the trial.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the omission of the instruction was plain error and that it affected Adams' substantial rights. The court emphasized that the government's case was not overwhelming and relied on inferences from circumstantial evidence. The appellate court also found that the error seriously affected the fairness, integrity, and public reputation of the judicial proceedings, warranting a new trial. View "USA v. Adams" on Justia Law

In 2016, Chance Barrow was employed as a digital forensic examiner by the Army Criminal Investigation Division (Army-CID) in Irvine, California. By 2018, he was a special agent. In March 2018, Barrow's ex-wife reported him to the Naval Criminal Investigative Service (NCIS) for alleged sexual assault. Consequently, Army-CID placed Barrow on administrative duty. After a meeting in April 2018, where officials suggested he resign, Barrow resigned. In May 2018, Barrow applied for a position with the Treasury Inspector General for Tax Administration (TIGTA), providing false information about his employment status and history. TIGTA hired him, but later discovered the allegations and initiated a criminal investigation, leading to Barrow's suspension and eventual termination.The United States District Court for the District of Columbia tried Barrow, who was indicted on two counts of wire fraud and one count of concealment of material facts. The district court excluded evidence related to Barrow's job performance and the NCIS investigation details. The jury found Barrow guilty on all counts, and the court sentenced him to seventeen months in prison and ordered him to pay $77,057.00 in restitution. Barrow appealed, arguing insufficient evidence and errors in the district court's rulings.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court found insufficient evidence to support the wire fraud convictions, as the government failed to prove that Barrow's lies deprived TIGTA of money or property. The court vacated the wire fraud convictions and remanded for a judgment of acquittal. Additionally, the court reversed Barrow's conviction for concealment of material facts due to the exclusion of critical evidence and remanded for further proceedings. The restitution order was also vacated. View "USA v. Barrow" on Justia Law

Appellant appealed his criminal convictions for forty-two counts of prescribing a controlled substance without a legitimate medical purpose under 21 U.S.C. Section 841(a) and two counts of money laundering under 18 U.S.C. Section 1957. Appellant argued that the evidence at trial was insufficient to convict him. He contends that each of his actual patients included in the indictment, despite the fact that they were ultimately pill-seekers addicted to oxycodone, had real ailments to which he properly responded in good faith, and the government did not prove otherwise. He also argues that the two undercover DEA agents presented real MRIs with real injuries, leading Appellant to believe he was treating them appropriately.   The DC Circuit reversed and remanded the district court’s judgment of conviction and sentencing. The court held that the evidence at trial was sufficient to convict Appellant, and the court affirmed the district court on its Napue and expert testimony rulings. However, the court reversed the district court on its Brady decision and remand this case for a new trial due to the government’s suppression of the favorable and material Pryor Reports and CCN Report. The court explained that although the Brady error is dispositive of this appeal, the remand will open the possibility of a new trial, and Appellant’s remaining arguments as to the evidentiary questions in the case are likely to arise again on retrial. View "USA v. Ivan Robinson" on Justia Law

A grand jury charged Appellee with wire fraud and obstructing an official proceeding. Appellee moved to dismiss the indictment for failure to state an offense. The district court granted the motion, and the Government appealed to contest the dismissal of the section 1343 (wire fraud) count. Before the District Court, Appellee moved to suppress certain evidence obtained pursuant to a search warrant issued in this case and requested a hearing pursuant to Franks v. Delaware, 438 U.S. 154 (1978).  The Government does not appeal the dismissal of the section 1512(c)(2) (obstructing an official proceeding) count.   The DC Circuit affirmed the district court’s dismissal of the indictment. The court dismissed Appellee’s cross-appeal of the district court’s denial of his motion to suppress and request for a Franks hearing. The court explained that regardless of whether Appellee lied to “obtain” future salary or “maintain” his existing salary, the court affirmed the district court’s dismissal because the indictment fails to allege that the State Department was deprived of something more than Appellee’s honesty. The court wrote that the wire fraud statute, as interpreted through the lens of Supreme Court precedent, does not support an indictment on the facts proffered by the Government in this case. Moreover, the court explained that Appellee is the prevailing party in this case. As such, he has no right to seek review of the district court’s denial of his motion to suppress and request for a Franks hearing. View "USA v. Paul Guertin" on Justia Law

Plaintiff was employed through various foreign subsidiaries of Morgan Stanely between 2006 and 2016. Plaintiff claims that, between 2014 and 2016, he raised concerns about U.S. securities violations, which occurred overseas but affected U.S. markets. After receiving a pay cut and a recommendation that he find employment elsewhere. In January 2016, Plaintiff resigned. Plaintiff then hired counsel. However, counsel withdrew after Morgan Stanley threatened to pursue an action against counsel for violations of his professional obligations.The Department of Labor Administrative Review Board dismissed Plaintiff's claim under Section 806 of the Corporate and Criminal Fraud Accountability Act of 2002, Title VIII of the Sarbanes–Oxley Act, finding that Section 806 did not apply because he was not an "employee" at the time of any alleged retaliation. The D.C. Circuit affirmed, finding that Plaintiff did not meet the definition of "employee" at any time during the alleged retaliation. View "Christopher Garvey v. Administrative Review Board" on Justia Law