In investigating PPP loan fraud, the government first looks at the application itself.  How many employees does the company have?  Does that number match their payroll tax filings?  Are the 941‘s the same as what is on file at the IRS?  Has the owner(s) been convicted of or pled guilty to a felony with the past 5 years?  Do the bank statements submitted on the PPP loan application match the actual bank statements? Are there business expenses on the bank statements?  Was the bank account in a business checking account? When was the entity created?  Did the company apply for more than one loan?  Does the individual owner have multiple entities and apply for multiple loans?  Any inaccurate statements on the application can result in a charge under Under 18 U.S.C. § 1344 (bank fraud) – making false statements to an FDIC-insured financial institution, or making false statements to the SBA.  In addition, the CARES Act also has requirements for how companies use, and account for the use of, PPP loan funds.  Some of the more outrageous PPP loan fraud prosecutions have resulted due to individuals buying Range Rovers, Lamborghinis and rolex watches with PPP loan proeeeds, i.e. converting PPP loan funds for personal use.  Also, when seeking forgiveness for loans, companies must be very careful in what they submit.  Any false documentation submitted can result in prosecution.

So, should the government be inquiring about your PPP loan(s) or EIDL loans or any disaster relief funds, it is important to contact us immediately.  Being evasive or being unable to produce documentation of PPP Compliance will only increase issues that you will be facing.  Allow Conaway & Strickler, PC to help you with expert advice from experienced federal counsel. We are very familiar with the federal criminal investigative process with the SBA-OIG, IRS and the DOJ.

Conaway & Strickler, PC handles PPP loans nationwide. Meg Strickler has 25 plus years experience fighting federal criminal cases in the district courts across the country.

What reports are generated from my devices?

Cellebrite reports provide information about phone calls and text messages; but now it also provides a report on the data stored on these devices such as voicemails, images, and browsing history. From GPS location data to social media activity, cell phones can provide a treasure trove for law enforcement agencies to use to build their cases.

What protections do I have to prevent law enforcement from searching my devices?

Laws on the admission and use of this evidence in court are still evolving. In the Georgia Supreme Court case State v. Wilson, the court ruled search warrants for cell phone contents must specify the items being sought. This is to prevent a general search of a person’s belongings, which is prohibited by the Fourth Amendment.

Do I have the same legal rights at the border that I would elsewhere in the United States?

The Supreme Court ruled that the police must get a warrant before searching someone’s cell phone in Riley v. California. The Supreme Court held that a warrant is generally required before a search of a cell phone seized incident to arrest. BUT, at the border, there is less protection. According to US Customs and Border Protection a person may be chosen for inspection for many different random reasons and thus there is less protections when crossing the border in or out of the US. What this means – you can be pulled for a secondary inspection and all of your devices can be searched without a warrant. They can also get an image from the hard drive of these devices and / or seize the devices at the border.

What do I do if I am asked to give my cell phone to law enforcement?

If you know your rights, you can comply when necessary. So, for example, if you are traveling internationally – do not travel with devices that you would not want searched. Furthermore, if you are driving and pulled over with drugs or a high amount of currency in your car, etc, your cell phone and / or other devices WILL be seized and analyzed.

And, please remember anything uploaded to the cloud is fair game for law enforcement. That’s a broad statement – but when you signed up for Instagram, Whats App, Google, TikTok, Facebook, Signal, Twitter/X, etc, you signed away any privacy rights. Those companies are fast to comply with law enforcement subpoenas giving whatever you posted/uploaded immediately to them.

The False Claims Act (FCA), also known as the “Lincoln Law,” is a federal law that imposes liability on individuals and companies who defraud governmental programs. This includes submitting false invoices, making false statements to get paid by the government, or avoiding payment of money owed to the government. The law was originally enacted during the Civil War to combat fraud by government contractors supplying the Union Army with substandard goods; however, the FCA was strengthened in 1986, when Congress increased incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government.

Under the FCA, individuals or entities can be held liable for knowingly submitting false or fraudulent claims for payment to the government. The FCA allows private individuals, known as “whistleblowers” or “relators,” to file lawsuits on behalf of the government and share in any monetary recovery. These lawsuits are known as qui tam actions. If the government intervenes in the lawsuit and recovers funds, the whistleblower is typically entitled to receive a portion of the recovered amount, often ranging from 15% to 30%. In fiscal year 2023, whistleblowers filed 712 qui tam suits, and this past year the Justice Department reported settlements and judgments exceeding $2.3 billion in these and earlier-filed suits.

The False Claims Act has been instrumental in recovering billions of dollars for the government and deterring fraudulent conduct in government programs and contracts. It is one of the most powerful tools available for combating fraud against the government in the United States. Healthcare fraud has remained a leading source of FCA claims in recent years.

The Justice Department has litigated several significant cases involving the Medicare Advantage program. The Cigna Group settled for $172 million to resolve allegations that it knowingly submitted and failed to withdraw inaccurate and untruthful diagnosis codes for its Medicare Advantage Plan enrollees to increase its payments from Medicare. Martin’s Point agreed to pay more than $22 million following allegations that it violated the FCA by submitting inaccurate diagnosis codes for its Medicare Advantage Plan enrollees. Other cases related to Medicare Advantage matters continue to be litigated including actions against the UnitedHealth Group, Independent Health Corporation, Elevance Health (formerly Anthem), and Kaiser Permanente.

In deciding whether to terminate probation early, the Court will consider the factors set forth in 18 U.S.C. 3553(a). The 3553(a) factors include: the nature and circumstances of the offense, the history and characteristics of the defendant, the need for the sentence imposed to reflect the seriousness of the offense, to promote respect for the law, and to provide just punishment for the offense, the need for the sentence imposed to afford adequate deterrence to criminal conduct, the need for the sentence imposed to protect the public from further crimes of the defendant, the need for the sentence imposed to provide the defendant with needed educational or vocational training, medical care, or other correctional treatment, and the need for the sentence imposed to avoid unwarranted sentence disparities among defendants with similar records who have been found guilty of similar conduct.

After a defendant files a petition to have their sentence modified or terminated, it is the Judge’s decision whether probation should be terminated early. This judge will often be the same judge that imposed the original sentence. In most cases, judges deny requests; however, certain factors can strengthen a defendant’s request for early termination of probation. Overall, to successfully terminate a term of probation, the defendant must show that they have earned it through good conduct, and it would be in the interests of justice.

Judges may consider the following factors in their determination of a request to terminate or modify the term of probation:

• Whether your probation officer and the Prosecutor support your request;
• The nature and seriousness of the crime you were convicted of;
• Your criminal history and/or mental illness history;
• Whether the judge believes you are a threat to the public;
• Whether the judge believes you have been sufficiently punished;
• Whether you have completed any substance abuse treatment or rehabilitation programs;
• How your sentence compares to the federal sentencing guidelines recommended sentence;
• U. S. Sentencing Commission policy statements;
• Whether you’ve paid restitution to the victims.

Your probation officer will also ask you about how you’ve accepted responsibility for breaking the law. It is important to be aware that, in the federal system, defendants who do not clearly accept responsibility for their actions can receive harsher sentences than those who admit they broke the law, follow the rules of the Court, and continue to follow the law.

Your probation officer will also ask you about the assets you and your spouse own, any cash you have, and any debts you owe. This is because in some cases the Court is required to determine if you have the ability to pay a fine or, in some cases, restitution to victims. Restitution can be mandatory, and the financial information you provide will be used to determine monthly payments. Because of this, and because your officer will investigate and confirm the information you provide, it is very important you give truthful information about your financial situation. You may also be asked to provide documents such as, but not limited to, statements, deeds, and titles, which support the information you provide verbally, and on a variety of financial forms. Finally, you will be asked to sign a variety of release forms that will allow your officer to access government records, as well as educational, medical, psychiatric, and employment information about you.

After the PSR interview, Probation will conduct their independent investigation by reviewing all relevant records and reports from investigating agencies and conducting further interviews. All of this information, along with any corrections or objections, will be compiled in the final PSR.

After a defendant pleads guilty (or is found guilty by a jury or judge), the judge will order the probation officer to create the PSR. The assigned probation officer will conduct a PSR interview with the defendant as well as an independent investigation into the offense to gather information.

Once the initial PSR is complete, the report is sent to your attorney, the Government’s attorney, and the Court. Once disclosed, your attorney is required to review the report with you. If you see any information that is incorrect, or if you disagree with how the guidelines are computed, your attorney can file objections to the PSR. The final PSR will make any corrections and note any objections in the PSR Addendum. If there are still any unresolved objections by the day you are sentenced, the Judge will resolve any disagreements before pronouncing your final sentence.

A PSR has six major parts:

• Part A shows everything that has happened in your case so far, from your arrest to when you are scheduled to be sentenced; discusses what happened during the offense(s) of conviction; the impact of the offense on the victim(s); your acceptance of responsibility for the offense; and how the Federal Sentencing Guidelines apply to the facts of your case.
• Part B lists and describes any arrests and convictions you have had before now, and scores them to obtain your Criminal History score.
• Part C is all about you. This section discusses your personal background and family information, your financial status, and any information you or your family, friends, or employers want the judge to know about you.
• Part D lays out the guideline range computed by the probation officer and the minimum and maximum punishments required by the law. It is important to remember the probation officer does not decide your sentence. Only the judge can decide your sentence and resolve any disagreements about your case.
• Parts E and F discuss identified offense or personal history factors the judge may use to give you a lower or higher sentence than the guideline range stated in Part D of the PSR.

Wire Fraud is a serious white-collar crime and is defined under 18 USC §1343 and states:

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both. 18 U.S.C.A. § 1343.

Generally, the 11th Circuit has stated that mail or wire fraud occurs when (1) a person intentionally participates in scheme to defraud another (2) of money or property and (3) uses mails or wires in furtherance of that scheme. Cesnik v. Edgewood Baptist Church, 88 F.3d 902 (11th Cir. 1996).

The Department of Justice however does have its own internal limitations for prosecution. According to Justice Manual 9-43.100 (Prosecution Policy Relating to Mail and Wire Fraud), “Prosecutions of fraud ordinarily should not be undertaken if the scheme employed consists of some isolated transactions between individuals, involving minor loss to the victims, in which case the parties should be left to settle their differences by civil or criminal litigation in the state courts. Serious consideration, however, should be given to the prosecution of any scheme which in its nature is directed to defrauding a class of persons, or the general public, with a substantial pattern of conduct.”

Alternatives to prosecutions can also come in the form of Pretrial Diversion (PTD). PTD programs divert certain offenders from traditional criminal justice processing into alternative systems of supervision and services. Individuals who successfully complete a PTD program may qualify for a range of case outcomes, including the declination of charges, dismissal or reduction of charges, or a more favorable recommendation at sentencing.

Navigating serious crimes like these can be the toughest thing you have ever done. Don’t do it alone. Contact our team today for more information about how we can protect your rights.

It’s a Federal crime to commit aggravated identity theft.

The Defendant can be found guilty of aggravated identity theft only if all the following facts are proved beyond a reasonable doubt:

(1) the Defendant knowingly transferred, possessed, or used another person’s [means of identification] [identification documents];

(2) without lawful authority; and

(3) during and in relation to [the eligible felony alleged in the indictment].

[A “means of identification” is any name or number used, alone or together with any other information, to identify a specific person, including a name, social security number, date of birth, officially issued driver’s license or identification number, alien registration number, passport number, employer or taxpayer identification number, or electronic identification number or routing code. It can also include a fingerprint, voice print or other biometric data.]

[An “identification document” is a document made or issued by or for the United States Government, a state or foreign government or political subdivision.]

The Government must prove that the Defendant knew that the [means of identification] [identification documents], in fact, belonged to another actual person, [living or dead,] and not a fictitious person.

The Government must prove that the Defendant knowingly transferred, possessed, or used another person’s identity “without lawful authority.” The Government does not have to prove that the Defendant stole the [means of identification] [identification documents]. The Government is required to prove the Defendant transferred, possessed, or used the other person’s [means of identification] [identification documents] for an unlawful or illegitimate purpose.

The Government also must prove that the [means of identification] [identification document] was possessed “during and in relation to” the crime alleged in the indictment. The phrase “during and in relation to” means that there must be a firm connection between the Defendant, the [means of identification] [identification documents], and the crime alleged in the indictment. The [means of identification] [identification documents] must have helped with some important function or purpose of the crime, and not simply have been there accidentally or coincidentally. The [means of identification] [identification documents] at least must facilitate, or have the potential of facilitating, the crime alleged in the indictment.

We at Conaway & Strickler, PC know how to combat these type of charges. Please feel free to access our blog for other entries here

Please contact us to learn more should you be facing criminal charges.

RDAP consists of 3 intensive phases, totaling over 500-hours of voluntary individual and group treatment, and it is about 9-12 months long. This program offers prisoners to live in a modified prosocial community within the prison, separate from the general population. They split their day in half with vocational, work, or school activities and the other half in treatment/programs. Prisoners must meet specific requirements to be considered for this program, and space is often limited. The prisoner must have at least 24 months remaining in their sentence to complete the program.

Since some inmates may have less than a 24-month sentence, the FBOP also offers a Non-Residential Drug Abuse Program (NRDAP), where prisoners can participate in 12-24 weeks of Cognitive-Behavioral Treatment. This treatment consists of skill-building within communication, rational thinking, and institution adjustment. NRDAP is often offered in a group setting and is more accessible to prisoners because of the less strict qualifications. NRDAP differs from RDAP because offenders may join this program if they have short sentences, are not eligible for RDAP, or awaiting availability.

The key benefit other than treatment is that those inmates who successfully complete either program may be eligible for a maximum pre-release time in a residential re-entry center, such as a halfway house, where treatment continues thus shortening the actual time incarcerated.

For more information, please click here or feel free to access our blog or contact Conaway & Strickler, PC to discuss this in more detail.

With all of this going on, the US Attorney’s office increased its prosecutions of individuals of white collar crimes in the year 2021. White collar charges like fraud, theft, corruption, bribery, environmental crime, tax fraud, health care fraud, procurement fraud, money laundering, PPP loan fraud, etc will continue to get more attention from the Department of Justice.

What does this mean? It means that investigations of any sort need to be taken seriously and that you should contact a lawyer immediately if any wrongdoing is alleged.

Conaway & Strickler, PC has a long history of handling fraud cases of all varieties and is well equipped at fighting the DOJ in their overzealous prosecutions. Please feel free to contact us so that we can help you avoid future headaches.

Indeed, according to the Cornell Law School, destroying a mailbox is a federal offense that is punishable by either fines or imprisonment of up to three years (or a combination of both). Per the US Postal Service, the fines associated with this defense can be up to $250,000. Not only is damaging, defacing or destroying a mailbox punishable under this statute, but so too is entering or breaking open a mailbox (that is not yours) to gain access to others’ mail.

You have probably seen or heard of stories of rowdy teens or young adults hitting mailboxes with baseball bats or putting firecrackers inside of them. You likely dismiss these as childish pranks, yet the damage that they cause and the impact that such an act can have is very real. Thus, it is not an acceptable defense to a charge of destroying a mailbox that you or someone you know was simply trying to play a joke.

Gaining entry to another’s mailbox presents more of a grey area, however. If, say, you believed you had another’s permission to get their mail, then it could be argued that there was no intent to damage or defraud. More information on answering to alleged federal crimes like damaging a mailbox can be found here on our site.

Tax evasion is an example of a federal crime that can leave you facing serious legal consequences for failing to properly file and claim your taxes with the IRS. While seemingly insignificant, your decision to avoid paying your taxes can actually have detrimental consequences. According to Financial Web, if you miscalculate your taxes or fudge numbers in your favor and what you are reporting cannot be effectively backed by supporting receipts, you could be accused of tax fraud or evasion. For this reason, it is critical that you double-check your work if you are filing your own taxes, and even compare your records with the paperwork you have received if you had your taxes filed by a professional.

If you have deliberately refrained from paying your taxes, you could be fined anywhere from $100,000, to $25,000 for every year that you were delinquent on your taxes. Additionally, depending on the length or severity of your crimes, you could be sentenced to serve time in prison.

When you are aware of the consequences of being accused with tax evasion, you may have a better idea of how to proceed to minimize the effects of the consequences you are facing on your long-term financial health. For more information about tax crimes, visit our web page.

According to Investopedia, tax evasion, also known as tax fraud, costs the government millions of dollars every year. As a result, the consequences for getting caught may include fines, interest, penalties and potential imprisonment. The IRS understands the tax code can be complicating and confusing, and they know some tax preparers make mistakes, so this is not the same as tax evasion. Examples of fraud include:

• Claiming personal-related expenses as business ones
• Falsely claiming credits or deductions
• Purposely underreporting income
• Failing to report cash payments either as payer or payee
• Purposely failing to withhold federal income tax from worker paychecks
• Intentionally failing to report payroll tax reports
• Purposely not paying tax debt owed

Most people would like to pay the least amount of taxes as possible, and the Motley Fool discusses some legitimate ways to minimize taxes owed, and this in known as tax avoidance. People may contribute to a retirement account to defer taxes, and this is perfectly legal. There are also a wide variety of business expenses that the IRS identifies as legitimate deductions, and there are additional credits and deductions that individuals qualify for.

Many people worry about deportation, but this is not the only consequence of an immigration-related case. Some people may face financial hardships as a result of these allegations and the emotional impact can be staggering. After all, many who are going through this feel very stressed out and they may also struggle with anxiety. From a career standpoint, these charges can be extremely detrimental. Not only could someone lose their job, but they may have a hard time finding work in their field down the road.

Immigration offenses can be tough for those facing charges, but they can also create emotional and financial difficulties for loved ones. If you have kids or are married, you may be worried about what will happen to your family depending on the outcome of your case. It is imperative to thoroughly go over your legal options and have a solid understanding of the best way to handle your case, taking all unique details of your circumstances into consideration.

According to FindLaw, carrying out illegal activities in order to sustain or further the reach and influence of organizations or criminal enterprises is considered racketeering. Under the Georgia RICO Act, obtaining or keeping control of or interest in any businesses or types of property through racketeering activities is prohibited. In order to prove a pattern of racketeering, there must be at least two felony illegal activities involved.

The RICO Act is charged as a felony level offense. If convicted, people could be fined up to $25,000 for each count against them, sentenced to between five and 20 years in prison, or both.

In addition to the potential criminal penalties, people may also be subject to civil remedies if they are convicted of a RICO violation. According to state law, the civil remedies for a RICO conviction include being required to give up their business interests, real property and personal property; having restrictions imposed on their future investments and activities; having their business licenses or permits suspended or revoked; being required to dissolve completely or to restructure their businesses; or being ordered to pay punitive damages or restitution totaling three times the amount they allegedly stole.