The Whistleblower on Trial: The History and Uncertain Future of Zafirov v. Florida Medical

For over a century, the False Claims Act (FCA) has been the federal government’s most potent weapon against fraud. At its core sits the qui tam provision—a mechanism allowing private citizens (called “relators”) to sue companies on behalf of the government and pocket a portion of the recovered funds.

But a case in Florida has put the entire multi-billion-dollar whistleblower framework on trial. The case is United States ex rel. Zafirov v. Florida Medical Associates, LLC. After lower-court rulings and tense appellate arguments in December 2025, the legal and healthcare worlds are anxiously awaiting to see how the Eleventh Circuit Court of Appeals will rule.

The History of this False Claims Act suit: How We Got Here

The story began when Dr. Clarissa Zafirov, a physician in Florida, alleged that her employer and other defendants engaged in systemic Medicare fraud by misrepresenting patient conditions to pad federal reimbursements. The U.S. government chose not to intervene, leaving Dr. Zafirov to spearhead the complex litigation herself.

The defendants, however, didn’t just fight the fraud allegations; they attacked the constitutional foundation of the lawsuit. In September 2024, U.S. District Judge Kathryn Kimball Mizelle dropped a bombshell by dismissing Zafirov’s suit. She didn’t rule on whether fraud occurred. Instead, she ruled that the False Claims Act’s qui tam provisions are unconstitutional.

The Article II Battleground

Judge Mizelle’s ruling hinged on the Appointments Clause of Article II of the U.S. Constitution.
Is a Whistleblower an "Officer of the United States"? ├── YES ──> Must be appointed by the President, Courts, or Dept. Head. (FCA Fails) └── NO ──> Private citizen pursuing a claim. (FCA Succeeds)

Judge Mizelle argued that because a relator wields significant executive power—conducting civil litigation in the name of the United States to vindicate public rights—they act as an “Officer of the United States.” Because Dr. Zafirov appointed herself to this role by simply filing a complaint, her status bypassed constitutional appointment protocols. “Zafirov has determined which defendants to sue, which theories to raise, which motions to file, and which evidence to obtain… Yet no one… appointed Zafirov to the office of relator. Instead… Zafirov appointed herself. This she may not do.”
— Judge Kathryn Kimball Mizelle

While decades of judicial precedent across the country had uniformly rejected this argument, Judge Mizelle’s ruling breathed real life into a legal theory previously sparked by Supreme Court Justice Clarence Thomas in a 2023 dissenting opinion (U.S. ex rel. Polansky), where Justices Kavanaugh and Barrett also expressed interest in reviewing the issue.

The Eleventh Circuit Showdown

The Department of Justice and Dr. Zafirov promptly appealed, leading to highly anticipated oral arguments before a three-judge panel of the Eleventh Circuit on December 12, 2025.

The panel – Circuit Judges Elizabeth L. Branch, Robert J. Luck, and Senior District Judge Federico A. Moreno—focused intensely on the concept of control.

The arguments were mainly over two competing perspectives:

1. The Government’s and Relator’s Defense
The DOJ shifted its strategy slightly at oral arguments, focusing heavily on the “continuing position” prong of officer status. They argued that an “officer” must occupy a permanent, continuous government seat (like the Secretary of State). A whistleblower is a temporary, self-interested private actor whose role dissolves when the case ends. Furthermore, they argued the government retains ultimate control because it can step in and dismiss or settle the case at any time.

2. The Defense and Amici Pushback
Attorneys for Florida Medical and supporting business groups argued that when the government declines to intervene (which occurs in roughly 80% of FCA cases), the relator is entirely “in the driver’s seat.” They exercise massive, unaccountable federal authority to issue subpoenas, freeze corporate assets, and force massive settlements without answering to the President.

Prediction: How Might the 11th Circuit Rule?

Predicting appellate outcomes is tricky, but the panel’s questioning in December 2025 offered some clues. The judges did not treat the constitutionality of the FCA as a settled matter. They repeatedly pressed the DOJ on why Justice Thomas’s strict separation-of-powers logic was wrong.

The court essentially faces three paths:

1) Reverse the Dismissal (Uphold the FCA)
The court aligns with decades of historical practice and other circuits (like the Sixth Circuit’s January 2026 ruling), finding that private bounty-hunters are not public “officers.” Therefore it would remain business as usual. Whistleblower cases proceed normally in Florida, Georgia, and Alabama.

2) Affirm the Dismissal (Strike down Qui Tam)
The panel adopts Judge Mizelle’s and Justice Thomas’s strict textualist view that prosecuting public fraud is an exclusively executive function that cannot be outsourced to unappointed citizens. This would create Immediate chaos. Hundreds of pending qui tam cases in the Southeast would face dismissal, crippling a primary source of federal fraud recovery.

3) The Middle Ground (Narrow Procedural Fix)
The court rules that qui tam actions are only unconstitutional if the government completely declines to intervene, or suggests a fix where the DOJ must sign off on major litigation steps. A logistical headache for the DOJ, which would be forced to actively micromanage cases it initially wanted no part of.

The Verdict on the Horizon

Given the conservative, textualist leanings of the Eleventh Circuit panel, an affirmance (ruling the qui tam provision unconstitutional) is a highly distinct possibility. The judges seemed genuinely troubled by the lack of day-to-day executive oversight in declined whistle-blower lawsuits.

However, regardless of whether the Eleventh Circuit upholds the law or strikes it down, Zafirov is on a fast track to the ultimate destination. Because a stark circuit split is opening up between courts upholding the False Claims Act and those questioning it, this case is highly likely to end up before the U.S. Supreme Court, where the future of American whistleblower law will be decided once and for all.

Although it is not required, having an attorney assist you in physician license defense usually helps you achieve a better outcome than if you were on your own.

WHAT CAN AN ATTORNEY DO TO ASSIST?

If you have had an arrest for any crime, it is important to consult with an attorney to understand your duties to inform the Georgia Composite Medical Board. You may need to immediately self report if the arrest involved substance abuse or moral turpitude issues. How and when you communicate with the Board is crucial to your future success in maintaining your license.

In addition, when it comes time to renewal, you must answer the question about any interactions with law enforcement with a YES and attach a narrative. Again, having an attorney assist you with any and all communications with the Composite Board will help your ultimate success in maintaining your license as a physician.

WHAT IF MY LICENSE IS UNDER INVESTIGATION?

If you have been notified by the Georgia Composite Medical Board that you are under investigation, you should immediately contact an experienced health care physician license defense lawyer. We can assist you in all communications with the Board so that you don’t make any statements or submit any documents that could inadvertently hurt you. You will also need to contact your malpractice insurance carrier right away and be sure to document everything involved in what is alleged in the allegations.

WHAT IF I AM ASKED TO SURRENDER MY DEA REGISTRATION?

Has your clinic been subject to a search warrant? At the time of the execution of the search warrant, did one of the agents ask you to voluntarily surrender your DEA registration? You need to consult an attorney immediately not only because a search warrant was executed on your clinic, but, also because there are long term effects of surrendering your DEA registration. Submitting a DEA Form 104 (“Voluntary Surrender of Controlled Substances Registration”) without legal advice is not a good idea. Voluntary surrenders are also typically reported to the National Practitioner Data Bank (NPBD).

WHAT IS THE NPBD?

The National Practitioner Data Bank was created by Congress in 1986 in order to prevent practitioners with histories of misconduct or incompetence from moving state to state without disclosure. Hospitals, state boards, malpractice insurers, and federal agencies are now legally required to report certain actions. There is an online guidebook that provides details on what specific actions are reported. Most importantly, any and all adverse restrictions or surrenders of privileges and adverse state licensing actions are reported.

Contact us immediately so that we can answer all of your questions and so that we can assist you in properly defend ing your physician license defense.

It is important to secure competent legal counsel as soon as possible to argue your case successfully.

There are many defenses that can be explored to get a positive outcome in your case. For example, the first one that comes to mind is entrapment. These days law enforcement often pose as other users in chat rooms or on the dark net. They pose as someone actively seeking CSAM. You may not have ever done anything illegal but for their persuading you to so. There are legal motions we can file that may be dispositive for your case.  Remember, the government has become well versed in programs like BitTorrent, and can be on the dark net doing things illegal themselves all in their efforts to “combat crime.”

Additionally, when law enforcement comes to execute a search warrant for devices at your home or office, they must have a valid search warrant or everything they seized will be discarded and not used in the case against you. You need an experienced criminal defense lawyer to ensure law enforcement did not violate your Constitutional rights in executing the search warrant.

Sometimes, a download from a proper website can result in what is termed as an “accidental download”. We have experts ready to assist us in showing the government exactly what is and what is not on your devices and what is and what was purposely downloaded and accessed.

These are but some defenses that Conaway & Strickler, PC have successfully argued. Contact us to discuss your case in more depth. The consequences of a child pornography or CSAM (“Child Sexual Abuse Material”) conviction are severe and life-altering. And the collateral consequence of being on the sex offender registry can be devastating. We are here to help.

To understand the specifics of this case, below we have quoted directly from the Petitioner’s Brief:

This case concerns the constitutionality of geofence warrants. For cell phone users to use certain services, their cell phones must continuously transmit their exact locations to their service providers. A geofence warrant allows law enforcement to obtain, from the service provider, the identities of users who were in the vicinity of a particular location at a particular time. In this case, law enforcement obtained, and served on Google, a geofence warrant seeking anonymized location data for every device within 150 meters of the location of a bank robbery within one hour of the robbery. After Google returned an initial list, law enforcement sought— without seeking an additional warrant—information about the movements of certain devices for a longer, two-hour period, and Google complied with that request as well. Then—again without seeking an additional warrant—law enforcement requested de anonymized subscriber information for three devices. One of those devices belonged to petitioner Okello Chatrie. Based on the evidence derived from the geofence warrant, petitioner was convicted of armed robbery.

The last time the Supreme Court wrestled with cell phone privacy issues was in Carpenter v. United States, 585 U.S. 296 (2018), which is a landmark United States Supreme Court case concerning the privacy of historical cell site location information. The Court held in that case that the government violates the Fourth Amendment when accessing historical cell phone Iocation records containing the physical locations of cellphones without a search warrant. That case, however, was after a suspect was identified, making it unlike the current case before the Supreme Court.

We receive terabytes of data in discovery for our cases. Motions to suppress can be filed for all of the data seized from search warrants of phones. We are cognizant of the ever changing landscape of Fourth Amendment case law. We ensure that law enforcement follows the appropriate procedures for every single case. Contact us now if you have a case you would like to discuss.

The recent conviction involving AI-generated obscene material of women and children highlights complex legal issues arising from the intersection of technology and criminal law. The Department of Justice is saying this is the first in the nation – a conviction of violating the new Take It Down Act. This new legislation, targeting AI-generated content, opens the door to prosecution of newly-defined crimes, but also raises critical questions about evidence, intent, due process, among others. This is especially an issue with any charges alleging CSAM (Child Sex Abuse Material). Recent cases are increasingly alleging use of generative artificial intelligence (AI) to digitally alter clothed images of minors into child pornography.

Prosecutors now have the ability to pursue cases involving synthetic media that depict explicit material. The use of AI to generate highly realistic images and videos makes these cases unique, requiring forensic expertise to distinguish fabricated content from authentic imagery. The prosecution must prove that the defendant knowingly produced and distributed material deemed obscene under the law, regardless of its digital origins.

One avenue for CSAM prosecution involves demonstrating that AI-generated content was used with the intent to exploit, harass, or endanger individuals. The law may enable prosecutors to argue that even virtual representations pose real harm, especially when circulated widely. In such cases, expert testimony and digital forensics play a crucial role in examining detailed technological material.

However, the defense may challenge the scope and application of the new law, questioning whether AI-generated images constitute actual offenses under existing legal definitions of obscenity and exploitation. Furthermore, issues of free speech and artistic expression may arise, requiring careful legal navigation. It is essential for courts to weigh the balance between protecting society and safeguarding individual rights.

As technology evolves, so must legal strategies. Defense attorneys fighting for clients charged with CSAM must remain vigilant, not only in protecting the rights of the accused, but also in ensuring that prosecution under new laws is fair, evidence-based, and respectful of civil liberties. The emergence of AI-generated content cases marks a new chapter in criminal justice.

If you or a loved one is facing charges related to AI-generated content, contact the attorneys at Conaway & Strickler to discuss your legal options.

I have received a subpoena from the SEC what do I do? 

It is important to understand that when you receive a subpoena from the SEC it is most definitely not the beginning of an investigation, but it is the beginning of your knowledge that there is an investigation.  If you have received a subpoena from the SEC, your first and immediate step is to contact an attorney who can help guide you through the process and get the best resolution possible.  

What is the process? 

First, the majority of the Securities and Exchange Commission must issue what is called a formal order of investigation. This is a formal order within the SEC that gives authority to start issuing subpoeanas, and the like. It is important to note that without that order, the SEC’s enforcement attorneys can request your cooperation, but they cannot require it.

The distinction is very important.  Before there is a formal order SEC staff can still conduct an investigation but it’s done in a more informal way. It is very similar to a federal agent coming by your office and just “asking a few questions”. They may imply it’s informal and no big deal – but it is. Even if you are contacted this way, it is imperative to understand that these conversations are not casual.   Everything you say and do can and will be held against you.   And it can be the information that is used to procure the formal order. 

What is a subpoena duces tecum? 

A subpoena duces tecum compels the production of documents. It is a legal order requiring a person to produce documents or tangible evidence for use at a hearing or trial. The term “duces tecum” comes from the Latin phrase “you shall bring with you.”. It includes correspondence, emails, contracts, financial records, trading logs, and communications on all types of platforms that include WhatsApp, Signal, Telegram etc per the revised 2026 Enforcement Manual. The subpoena will specify a deadline and an address for production. An experienced attorney may be able to secure a delay in this deadline so that there is adequate time to comply.

What is a preservation obligation?

There is a duty to preserve once an investigation has begun. These obligations now extend to encrypted communications on personal devices.  The preservation obligation attaches at the moment of service, and in certain cases before: the 2026 Manual directs enforcement staff to issue preservation letters early in an investigation, which means the duty to preserve may predate a subpoena by weeks.

What is a subpoena ad testificandum? 

A subpoena ad testificandum compels you to appear at a designated time and place to give sworn testimony.

Securing counsel early on is key.  Contact us so we can help.  Complying with SEC subpoenas is complicated and time consuming. Even after complying, the investigation stage is a long process. It is important to have qualified counsel throughout.  Remember all of the aspects of the SEC investigation can and usually does run parallel to a criminal investigation by the DOJ.  

For example, the SEC recently filed charges against purported crypto asset trading platforms Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc. and investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation alleging that they defrauded retail investors out of more than $14 million in an elaborate investment confidence scam.

“AI Wealth, Lane Wealth, AIIEF, and Zenith operated so-called investment clubs using WhatsApp and solicited investors to join the clubs with ads on social media. The clubs gained investors’ confidence with supposedly AI-generated investment tips before luring investors to open and fund accounts on purported crypto asset trading platforms Morocoin, Berge, and Cirkor, which falsely claimed to have government licenses, as alleged. The investment clubs and platforms then allegedly offered “Security Token Offerings” that were purportedly issued by legitimate businesses. In reality, no trading took place on the trading platforms, which were fake, and the Security Token Offerings and their purported issuing companies did not exist, according to the complaint. When investors tried to withdraw their funds, the complaint alleges that the defendants further defrauded victims by demanding that they pay advance fees. In all, the defendants misappropriated at least $14 million from U.S.-based retail investors and funneled those funds overseas through a web of bank accounts and crypto asset wallets, as alleged.”

In another recent case, a young man, Elmin Redzepagic was charged in a 21-count indictment offenses related to an alleged cryptocurrency fraud scheme. As alleged in the indictment, Redzepagic “held himself out to investors as a cryptocurrency investor who earned high rates of return. Once Redzepagic had victims’ initial investment, he told them they had earned a substantial profit but had to pay additional fees (“gas fees”) to withdraw it. Redzepagic claimed to work as part of a team that included someone known as “The Chef,” who supposedly led the operation and determined who, how, and when investors would receive their profits. In fact, Redzepagic did not invest victims’ funds in cryptocurrency but instead transferred the funds to Stake.com, an offshore gambling platform that Redzepagic used to receive and hold proceeds of the scheme, to generate cryptocurrency addresses for victims to use to transfer Bitcoin to him, and to make large “lulling” payments to victims throughout the course of the scheme.”

Finally, in another case, Goliath Ventures founder Christopher Alexander Delgado has been arrested on a criminal complaint charging him with wire fraud and money laundering. It is alleged that this “was a “Ponzi scheme,” which is a form of investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Delgado’s scheme involved soliciting victims to invest substantial sums of money under false and fraudulent promises of monthly returns generated through cryptocurrency “liquidity pools.” Victims were induced to give money to Goliath through personal referrals, professional marketing materials, luxury events, charitable sponsorships, and some monthly payments of purported returns, all of which were designed to establish Goliath’s bona fides with investors. Based on these false and fraudulent representations, Goliath obtained at least $328 million from victim investors.

Although Goliath represented that it would place the victim investors’ funds in cryptocurrency liquidity pools, in reality, the funds were primarily used to pay purported returns to earlier investors, to return principal to investors who requested it, and for Goliath’s extravagant business gatherings, holiday parties, and luxury travel accommodations. With victim investors’ funds, Delgado purchased four residential properties each worth between $1.15 million and $8.5 million.”

The FBI has recently stated that “cryptocurrency investment fraud, which the media commonly describes as “pig butchering,” is one of the most prevalent and damaging fraud schemes today.” As a result, more and more DOJ prosecutions are happening. Please contact us if you have received any sort of indication that you are under federal investigation.

Synthetic child sexual abuse material (CSAM) may not involve a camera or physical contact but it will depicts a child in a sexual context and thus is subject to regulation. Artificial intelligence is used to create realistic images or videos of children in sexual situations. Sometimes, these materials depict completely fabricated children or the face or likeness of a real child, placing them into sexualized content without their knowledge or consent. When it is the face or likeness of a real child, there is a higher likelihood of charges being imminent.

Can I be Charged with Synthetic CSAM?

It is possible to be charged criminally when in possession of AI generated child sex abuse material. There has been some movement in this area to litigate the legality of charging such activity criminally and only time will tell what that means for how the Supreme Court will rule as recent cases move through the system. News continues to state that AI – Generated CSAM is on the rise and “a growing concern” which will in turn result in additional federal and state criminal charges for AI-Generated CSAM.

Regulation of AI-created intimate images, often referred to as “deep fakes” has been broadly adopted by most states and the federal government. In the state of Georgia, there have been several attempts to change legislation including this recent letter written by Jon Ossoff. There are also recent prosecutions including a man in KY who was sentenced to five years for using AI to create child sexual abuse material. Prosecutions at the federal level for CSAM is on the rise as well.

If you learn that you are under investigation for offenses related to CSAM, you should contact us immediately. We are here to help and have experience to fight these cases.

Vehicular homicide charges can be brought against someone when a death results from an auto accident. The State of Georgia has two types of vehicular homicide charges: first degree (felony) and second degree (misdemeanor).  

FELONY VEHICULAR HOMICIDE

First-degree vehicular homicide is a felony.  O.C.G.A. § 40-6-393(a) and (b) states that a person commits homicide by vehicle in the first degree when:

Without malice aforethought, a person causes the death of another by

• Overtaking and passing a school bus (O.C.G.A. § 40-6-163);
• Reckless driving (O.C.G.A. § 40-6-390);
• Driving under the influence of alcohol or drugs (O.C.G.A. § 40-6-391); 
• Fleeing or attempting to elude a police officer (O.C.G.A. § 40-6-395);
• Hit and run. (O.C.G.A. § 40-6-270); or 
• Leaving the scene of the accident (O.C.G.A. § 40-6-270 

For all of the above situations, the penalty is three to fifteen years.  The criminal defense attorneys at Conaway & Strickler, PC, have been able to get those 3 years probated for several of our clients.  It is very important to retain a lawyer very early on after the accident so that all of your rights are protected and you get the best legal defense possible.  

Recently, an 18 year old was charged with felony first degree vehicular homicide in the death of beloved teacher Jason Hughes in Hall County, Georgia.  Meg Strickler recently discussed this case on the Law & Crime network. 

MISDEMEANOR VEHICULAR HOMICIDE 

Other than the driving offenses delineated above for felony vehicular homicide, all other simple misdemeanor traffic offenses will result in misdemeanor vehicular homicide.   Simple traffic charges can include failure to maintain lane, distracted driving, running a red light, etc.  

If you are a facing vehicular homicide case, contact us for more information and to retain a criminal defense attorney in Georgia who will represent your best interests.  

STEPS IN THE FEDERAL CRIMINAL PROCESS (Note: this blog will discuss the procedure for a plea. For more information on what to expect at federal criminal trial, read more here.)

Initial Appearance

Generally, after an investigation, charges are brought via a federal criminal indictment. Hiring a federal criminal defense attorney as soon as possible results in a better resolution.

Once an indictment is filed, and you are arrested and processed, you are brought before a magistrate judge for an initial hearing on the case. At that time, you learn more about your rights and the charges against you, and the judge decides whether to grant you pretrial release or order you be detained.

Arraignment

This hearing can occur at the same time as the initial appearance. You are asked if you have read and understood the charges against you and you formally enter a plea of “Not Guilty”.

Discovery

Federal criminal discovery is governed by three sources of law: Rule 16 of the Federal Rules of Criminal Procedure, the Supreme Court cases of Brady and Giglio, and the Jencks Act.

Plea Negotiations

The plea bargain itself, called a “Rule 11” plea in the Federal Criminal Justice system, generally is memorialized in a 15-20 page document called the “plea agreement“.

Change of Plea Hearing

A change of plea hearing in federal court is scheduled when a defendant decides to plead guilty to a federal offense. During the hearing, the judge will ask questions to ensure that the plea is entered freely and voluntarily.

Preparation of Pre-Sentence Report

After you enter a plea of guilty to a federal offense or is convicted by trial, you will meet with a probation officer. The probation officer will conduct an interview you to get more information about the entire case and then submits a report for the judge to determine the proper sentence. The following information is gathered during this interview and pre sentence investigation: family history, community ties, education background, employment history, military history, physical health, mental and emotional health, history of substance abuse, financial condition, and willingness to accept responsibility for the offense. Learn more about the pre-sentence report and the pre-sentence report interview.

United States Sentencing Guidelines

The United States Federal Sentencing Guidelines are what the judge uses to decide an appropriate sentence for each case.

Sentencing Hearing

A federal sentencing hearing is when final arguments are presented and a judge hands down the sentence.

What will this mean to clients charged with trafficking or possessing fentanyl? This concept has been debated for a few years now. Unfortunately, it is now official. This executive order will increase the penalties. 18 U.S.C. §2332 imposes a maximum sentence of life in prison for violation of this statute, and, if death results, this statute permits bringing the death penalty.

Despite intensified measures targeting drug supply and trafficking, there remains a lack of substantial efforts directed toward treatment, prevention, and broader accountability. Issues surrounding pharmaceutical companies such as the Sacklers, Purdue Pharma, and the ongoing opioid epidemic continue to be areas of public concern and debate.  

While federal enforcement efforts are intensifying, the current approach may further strain the criminal justice system, especially as courts and correctional facilities contend with rising caseloads linked to fentanyl offenses. The broader public health response—including investments in addiction recovery, harm reduction, and community education—remains crucial to preventing future tragedies and supporting individuals affected by substance use disorders. As policy shifts continue, we will need to balance aggressive enforcement with meaningful support for those impacted by the opioid crisis. 

The Department of Justice is currently citing “office policy” of very tough resolutions to drug trafficking cases with zero thought on the individual details of each case.

Contact us should you or a loved one be facing a possession with intent to distribute or drug trafficking charge.

The National Center for Missing and Exploited Children (NCMEC) CyberTipline is a centralized reporting system for the online exploitation of children. Facebook/Meta, Google, Instagram, Snapchat, Yahoo, Microsoft, X, etc are required to report suspected CSAM detected on their platforms. These providers make reports of suspected online sex crimes issues and NCMEC reviews each report, and then forwards it to law enforcement for investigation. The report typically includes a description of the images, cryptographic hash values assigned to each file, and the Internet Protocol (IP) address linked to the account in question.

Cases can also occur when computer repair technicians encounter suspected CSAM on a device, or if a family member or peer sees something and informs law enforcement. Additionally, if an allegation of child molestation is made against a suspect, that suspect’s devices may be seized and contraband files discovered.

II. How is the Dark Net involved in These Cases?

In a recent case, the DOJ arrested 18 defendants and dismantled four dark web sites dedicated to images and videos containing CSAM in “Operation Grayskull”.

Bitcoin is the most popular dark web currency. Litecoin comes in second as the most popular currency. Administrators of dark web sites use multiple websites under multiple pseudonyms, employing cryptocurrency mixers, numerous cryptocurrency wallets, and intermediary accounts to move the funds in an attempt to evade detection.

When a dark web site is dismantled, the users are tracked and ultimately arrested along with the administrators.

III. What are Some Ways to Defend These Types of Cases?

Conaway & Strickler, PC always advises seeking digital forensic experts in these types of cases. They can mirror image the devices seized and analyze them. They help decipher some of the more technical aspects of the discovery we receive. Their expertise can pinpoint precise steps the government may have missed in their investigation. They can also determine whether files were intentionally accessed, whether timestamps were manipulated, and whether malware or remote-access software could have created the material without the accused’s knowledge.

We also employ forensic psychologists to do a psychosexual evaluation to help provide mitigation and/or to provide a defense to the charges.

Conaway & Strickler, PC represents clients charged with Child Sex Abuse Material at the state and federal level. For further information, please see here or contact us. We are here to help.

I. What charges can the government use to allege money laundering?

18 U.S.C. § 1956: This is for laundering monetary instruments and carries a penalty of up to 20 years in prison and fines of up to $500,000 or twice the value of the funds involved, whichever is greater

18 U.S.C. § 1957: This applies to engaging in monetary transactions in property derived from specified unlawful activity and can result in up to 10 years in prison and fines up to twice the value of the property involved.

18 U.S.C. § 1956(h): criminalizes conspiracy to commit money laundering. It makes it illegal for two or more people to agree to conduct or attempt to conduct a financial transaction involving the proceeds of specified unlawful activity (money laundering). The crime is the agreement itself, regardless of whether the money laundering was ultimately successful.

Bulk cash smuggling (31 U.S.C. § 5332): knowingly concealing more than $10,000 in currency or other monetary instruments on the person of such individual or in any conveyance, article of luggage, merchandise, or other container, and transports or transfers or attempts to transport or transfer such currency or monetary instruments from a place within the United States to a place outside of the United States, or from a place outside the United States to a place within the United States

RICO Act- the Racketeer Influenced and Corrupt Organizations (RICO)

II. Drug traffickers are purported to utilize some of the following tactics to money launder

-Purchase and or title assets in fictitious names, aliases, or in the names of friends or relatives

-Create and maintain Bitcoin and other cryptocurrency accounts. These are utilized because of the anonymity associated with the use of Bitcoin and other cryptocurrency accounts and because cryptocurrency is decentralized.

III. Dark Net Explanation

The darknet is a part of the internet that requires special software, like the Tor browser, to access, and is not indexed by standard search engines. It uses layered encryption to make user activity anonymous

IV. Cryptocurrency

This is a type of virtual currency, that is a decentralized, peer to peer network based medium of value or exchange that may be used as a substitute for fiat to buy goods or services or exchanged for fiat currency or other cryptocurrencies. Examples of cryptocurrency are Bitcoin, Ethereum, Litecoin, Dogecoin, Monero, among others.

Most cryptocurrencies have a blockchain which is a distributed public ledger, run by the decentralized network, containing an immutable and historical record of every transaction. It is still difficult for a number of reasons for law enforcement to track.

Cryptocurrency is stored in a virtual account called a wallet. Crypto wallets are designed to store your private key, keeping your crypto accessible at all times. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum. Crypto wallets keep your private keys – the passwords that give you access to your cryptocurrencies – protected and accessible, allowing you to send and receive cryptocurrencies like Bitcoin and Ethereum.

The Financial Crimes Enforcement Network (“FinCEN”) has issued many notices discussing the various issues with cryptocurrency including recent concerns over regulatory risks related to convertible virtual currency kiosks. This notice dates back to 2019! It’s worth a read as it describes dark net marketplaces and cryptocurrency really well.

V. Recent cases in the news

The recent “Fire bunny” case was a case that operated on the darknet from January 2019 to August 2022. It operated on multiple dark web marketplaces and described itself as an “old vendor with the best in QUALITY SPEED OF DELIVERY and STEALTH.” In total, the defendants allegedly received nearly $8 million in Bitcoin proceeds and investigators found nearly $900,00 worth of cryptocurrency on one of the defendant’s phone. Some of the money received was laundered by converting Monero – a form of anonymized cryptocurrency that is extremely difficult to trace or monitor – into Bitcoin. The Bitcoin would then enter cryptocurrency exchange accounts controlled by the defendants and others. At least $2.4 million in Bitcoin was sent to a foreign based cryptocurrency exchange and laundered in the form of Chinese Yuan.

Samourai CEO Keonne Rodriguez and Samourai CTO William Lonergan Hill were recently sentenced for knowingly transmitting over $237 million in alleged criminal proceeds, coming from, among other things, drug trafficking, darknet marketplaces, cyber-intrusions, frauds, sanctioned jurisdictions, murder-for-hire schemes, and a child pornography (“CSAM”) website.

It utilized a Bitcoin mixing service known as “Whirlpool,” and coordinated batches of Bitcoin exchanges between groups of Samourai users. Through this process, the original source of particular Bitcoin holdings became obscured within the blockchain’s transactional record, effectively preventing law enforcement agencies and cryptocurrency exchanges from tracing funds back to their origins.

The second service, called “Ricochet,” enabled users to introduce additional and unnecessary intermediate transactions—known as “hops”—between sending and receiving addresses. This feature served a similar obfuscation purpose, making it substantially more difficult for monitoring entities to establish connections between cryptocurrency transfers and potential illicit activities. The scale of these operations was considerable: from Ricochet’s launch in 2017 and Whirlpool’s inception in 2019, more than 80,000 Bitcoin—valued at over $2 billion at the time—passed through these services. Samourai collected fees for both services, estimated to have a total value of more than $6 million.

Finally, in Operation RapTor, participating law enforcement agencies in the U.S., Europe, South America, and Asia arrested 270 darknet vendors, buyers, and administrators. Recently, as part of that large takedown, in the Southern District of New York (which is a district we are licensed to practice in) Incognito Market owner Rui-Siang Lin pled guilty for operating an online narcotics bazaar that existed on the dark web. It is alleged that Incognito Market sold more than $100 million of narcotics to anyone using the Tor web browser on the “dark web” or “darknet.”

Conaway & Strickler, PC is licensed to practice in NY, GA and CA. We can “pro hac” into any federal district in the country and have represented clients in New Hampshire, Vermont, Georgia, New Jersey, New York, California, Iowa, Texas, Tennessee, Florida, Pennsylvania, among others. We have “first chaired” many jury trials and have represented clients charged with RICO, drug trafficking and cryptocurrency money laundering cases. Please contact us for additional information or if you have a case you want to discuss with us. Please see here for additional blogs on this subject.

Under O.C.G.A. § 16-8-2, Georgia law defines theft as unlawfully taking or appropriating another person’s property with the intent to deprive the owner of it. “Deprive” means permanently withholding the property or keeping it long enough to cause the owner to lose significant value or use. Common types of theft charges our firm defends include:

• Theft by Taking: Physically taking property without consent.
• Theft by Deception: Using lies or false promises to obtain property.
• Theft by Conversion: Lawfully obtaining property (such as through a rental or loan) but later keeping it for personal use.
• Theft by Receiving: Knowingly receiving, disposing of, or retaining property that was stolen by another person.
• Shoplifting: Concealing, altering price tags, or leaving a store without paying for merchandise.
• Theft of Services: Receiving services (like utilities, labor, or accommodations) without payment or authorization.
• Retail Property Fencing: Organizing, financing, or reselling stolen retail goods—often linked to shoplifting rings or online resale schemes.
• Porch Piracy: Stealing delivered packages or mail from a person’s doorstep, mailbox, or private property. Georgia has recently increased penalties for this offense, treating it as a serious form of theft.

The value of the stolen property often determines whether a theft charge is a misdemeanor or felony. Misdemeanor theft involves property valued at $1,500 or less, and is punishable by up to 12 months in jail and fines up to $1,000. Felony theft involves property valued over $1,500, or theft of certain items like firearms, motor vehicles, or government property. Felony theft can carry one to ten years in prison. These penalties can become even more significant if an individual is charged with multiple counts of theft. Repeat offenders and thefts targeting elderly or disabled victims can also face enhanced penalties.

Theft convictions can carry more than just fines or jail time—they can affect employment, housing, and reputation. An experienced Georgia criminal defense attorney can help review the facts, negotiate with prosecutors, and build a strong defense strategy to protect your rights and future.

Whether you’re facing a shoplifting charge or a white-collar investigation, working with a skilled criminal defense lawyer in Georgia can make all the difference. Contact us to schedule a consultation.

Conaway & Strickler, PC has over 3 decades of experience assisting nurses whose professional licenses are threatened by allegations of misconduct. If you receive a notification from the Board about an issue with your license, contact us immediately. We are here to help.

Here are a few situations that Conaway & Strickler, PC has experience in when handling issues before the Georgia Board of Nursing, many of which involve issues of moral turpitude.

*If you have been arrested for a DUI, it is very important to notify the Georgia Board of Nursing immediately. It is always a good idea to have an attorney notify them for you. This is because the Board will respond with additional questions that include requesting a narrative of the DUI incident. You will also have to tell the Board when you renew your license, which is every two years. On the renewal application, it will say, “Were you charged with a crime?” and you’ll have to list your DUI charge there. Also, the DUI arrest can ultimately turn in to a private consent order requiring you to do drug/alcohol treatment and counseling, among other things.
*If you have been accused of diverting medications by your employer, you need to let the Board know. Like a DUI, this is something that needs to be addressed immediately as a way to mitigate issues with the board in addition to potential imminent criminal charges.
*If you have been accused of falsifying patient records, or billing issues with an employer or Medicare/Medicaid, you need to let the Board know immediately.
*If you have been accused of inappropriate sexual relationships with patients or sexually harassing colleagues, you need to let the Board know immediately.
*If you you have been accused of neglect or abuse of a patient, this can be seen as an issue of moral turpitude and also may require you to contact the Board immediately.

Here is a list of additional issues that requires mandated reporting:

*Practicing nursing as a registered nurse, an advanced practice registered nurse, or a licensed practical nurse, without a valid, current license;
*Practicing nursing as a registered nurse, an advanced practice registered nurse, or a licensed practical nurse under cover of any diploma, license, or record illegally or fraudulently obtained, signed, or issued;
*Practicing nursing as a registered nurse, an advanced practice registered nurse, or a licensed practical nurse during the time the applicable license is suspended, revoked, surrendered, or lapsed (administratively revoked) for failure to renew;
*Using any words, abbreviations, figures, letters, title, sign, card, or device implying that such person is a registered nurse, an advanced practice registered nurse, or a licensed practical nurse unless such person is duly licensed or recognized by the Georgia Board of Nursing to practice as such under the provisions of Nurse Practice Act;
*Fraudulently furnishing a license to practice nursing as a registered nurse, an advanced practice registered nurse, or a licensed practical nurse;
*Knowingly aiding or abetting any person in violating the Nurse Practice Act;
*Conviction of any felony, crime involving moral turpitude, or crime violating a federal or state law relating to controlled substances or dangerous drugs in the courts of this state, any other state, territory, or country, or in the courts of the United States, including, but not limited to, a plea of nolo contendere entered to the charge; or
*Currently or previously displaying an inability to practice nursing as a registered nurse, an advanced practice registered nurse, a licensed undergraduate nurse, or a licensed practical nurse with reasonable skill and safety due to use of alcohol, drugs, narcotics, or chemicals.

Contact us should you have any questions on how to deal with the Georgia Board of Nursing.

Over the past three decades, Conaway & Strickler, PC has represented physicians, nurses, dentists, CPAs, chiropractors, financial advisors, educators, lawyers, and many others. The list of licenses for the state of Georgia shows how many professionals rely on licensure for their livelihood. We provide strong defenses to protect your professional license and preserve your reputation and career longevity.

It is important to contact Conaway & Strickler, PC very early on so that we can make strategic steps to protect your livelihood. For example, a physician who is facing allegations of misconduct may face suspension, probation or revocation. It is important to have experienced legal counsel to effectively navigate these uncertain waters.

Here is a list of the top 10 of the Most Common Disciplinary Actions Against Healthcare Professionals published recently by GCMB. It helps explain some common pitfalls and responsibilities outlined by
the GCMB.

If you are facing any issues with your professional license, we are here to help.