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OverviewWCC

Approaches
OffenseRelated
o Focusesonhowacrimeiscommitted
OffenderRelated
o Focusesonaparticulargroupofpeoplethoseinhighstatusorrespectedoccupations,
orpositionsofpower
Note
thatalthoughaspecificcrimemaybethoughtofasWCC,theconductmayfallintoboth
WCCandstreetcrimedependingontheconductinvolved
o Forexample,acomputercanbeusedtocommitbothawhitecollarandnonwhitecollar
offense

TheWCCriminalLawyer
InformationControl
o Oppositionofgovernmentadversariesinquasijudicialandcourtsettings,challenging
subpoenasandseekingtosuppressevidencealreadyobtained
DistinctiveRole
o Presentationofsubstantivedefenses,i.e.defensesclaimingtheclienthasnotviolatedthe
lawoftenpresentedbeforeachargeisevenmade,ratherthanwaiting
o WCCtypicallyhaveambiguityintheirdefinition(althoughnotall)defensemaybenefit
ConstitutionalityIssues:ProsecutionofWCCriminals
o Debateovermethodsusedbyprosecutorstogetinformationavailablethroughother
sourceslessinvasiveortroublesometotheaccusedviasubpoenas,depositions,etc.
o Useoflegitmethodsdebatedwheninformationisreadilyavailableinotherways

TheFederalRole
ThevastmajorityofWCCprosecutionisbroughtunderstatelawinstatecourtsandgoverned,
apartfromConstitutionalissues,bystatelaw
TheSupremeCourthasnotedonnumerousoccasionsthatstateshavetheprincipalresponsibility
todefineandprosecutecrimes
Consider
the
OmnibusCrimecontrolandSafeStreetsActof1968,
whichincludedfederal
firearmsprovisionsthatsupplementedstatecriminalprohibitionsANDprovidedsubstantial
federalfinancialassistancetostateenforcementcrimeisessentiallyalocalproblem
o Congressdoesextend
fed.lawtocrimeconsider
PatriotAct
and
SarbanesOxleyAct
Thethreefastestgrowingareasofthefederaldocket:
o Drugoffenses,Immigrationoffenses,Firearmoffenses

FederalInfluenceandLocalCorruption
FourFederalStatutestraditionallyappliedtoothercriminalactivitywereputintousebeginning
inthe1970stohandlecorruptlocalofficials
o HobbesAct,MailFraudAct,TravelAct,RICO
See
Sabriv.US
inwhichtheSupremeCourtdismissedafederalismchallengeagainstan
anticorruptionstatutetargeting,amongothers,officialsofstateandlocalgovernments,when
usedbythefederalgovernmenttoprosecutebriberyofaMinneapolisCommunityDevelopment
AgencysBoardofCommissioners,duetoinvolvement/potentialinvolvementoffederal
funds
See
18U.S.C.666

DualSovereigntyRule(akaPetitePolicy,
Petitev.United
States,
notinConstit.somestatesd/nuse)
NeitherthedoublejeopardybarnorthedueprocessrequirementoftheConstitutionprevent
both
theFederalGovernmentANDState
fromprosecutingthesamedefendantforthesamecriminal
conduct
o See
U.S.v.Lanza
Allowsafed.prosecutionnotwithstandingpriorstateprosecutionforsameconduct
o The
DOJ
hasapolicyondualprosecutionandsuccessivefederalprosecutionthat:
o Precludes
theinitiationorcontinuationoffederalprosecution,followingapriorstateor
federalprosecution,basedonsubstantiallythesameact(s)ortransaction(s)
IF:
Mattermustinvolveasubstantialfederalinterest
Priorprosecutionmusthaveleftthatinterestdemonstrablyunvindicatedand
Thegovernmentmustbelievethatthedefendant(s)conductconstitutesafederal
offense,andthattheadmissibleevidenceprobablywillbesufficienttoobtainand
sustainaconvictionbyanunbiasedtrieroffact

Note:
U.S.AttysManualprovidesguidelinesthatarenotbindinginlaw,butareveryimportantto
knowandfollow

ForeignCorruptPracticesAct(FCPA)

See
UnitedStatesv.Castle
(CantdodgechargeforconspiracytoviolateFCPA,whichexcludesforeign
officials,ifnochargespossibleunderFCPACanadiandefendantscase)

See
UnitedStatesv.Kay
(OnspecificityofstatutesCongressionalintentiswhatitsays,FCPAclearin
languageandclearincomponentsreq.forprosecution)
InternationalLaw
hasfiveprinciplescommonlyusedtodeterminewhetheracriminalstatuteshould
haveextraterritorialapplication:
1. Territorial,
whereinjurisdictionisbasedontheplacewheretheoffenseiscommitted
2. National
,whereinjurisdictionisbasedonthenationalityornationalcharacteroftheoffender
3. Protective
,whereinjurisdictionisbasedonwhetherthenationalinterestisinjured
4. Universal
,whichamountstophysicalcustodyoftheoffenderand
5. PassivePersonality
,whereinjurisdictionisbasedonthenationalityornationalcharacterofthe
victim
See
UnitedStatesv.NipponPaperIndustriesCo,LTD.
(ShermanActviolationCourtstatedstatutory
languageisvitalandapplicationoffederallawabroadcangreatlyhingeontheimpactoftheconductin
questiondomestically,evenifwhollyabroad)Statuteherehadthe
ruleoflenity
initambiguity/dual
interpretationofstatuteresolvedinfavorofdef.(heldnonapplic.inthiscase)

Extraterritoriality
StatuteFocusedonExtraterritorialConduct
o FCPA,
forexampleclearlystatesthatitgivestheUSextraterritorialability
SpecificProvisions
o Statutesthatmayhaveanextraterritorialprovisionwithinit
o 18U.S.C.1623:
Thissectionisapplicablewhethertheconductoccurredwithinor
withouttheUnitedStates.
JudicialInterpretation
o Congressissilent,statuteissilent

ShermanActisanexample(
see
Nippon
caseabove)notfocusedon
extraterritorialconductasastatute,so
o CourtslooktoCongressintent/leg.historywhichishard
RevenueRule?

See
Pasquantinov.UnitedStates
(CandianUSliquorsmugglingUSstatuteclearlyprohibitedtheir
actionsandcouldbeapplied)
ForeignCommerce

See
UnitedStatesv.Tarkoff

Twowaystoestablishthatadefendantconductedafinancialtransaction.
o Thegovernmentmustproveeither:
(1)That[thedefendant]participatedinatransactionthatinanywayordegree
affectedinterstateorforeigncommerceandinvolvedthetransferoffundsorthe
useofoneormoremonetaryinstruments,or
(2)That[thedefendant]participatedinatransactionthatinvolvedtheuseofa
financialinstitutionthatwasengagedin,ortheactivitiesofwhichaffected,
interstateorforeigncommerceinanywayordegree."
Tarkoff
wordedlooselyenoughtoallowtheUStoexpanditsjxdtoawidesetofindividuals/acts.

Corporate(Criminal)Liability

1. Originally,noCorporateCriminalLiabilityatCL
a. Nobody,nomind
2. Then,forregulatoryoffensesonly
a. Actsofomissionintentnotrequired,onlyfines
3. Liabilityforactsbeyondomissions,but
limitedtostrictliability
a. Courtssaynobasisfordistinguishingpassiveandactiveacts
4. NOW,
criminalliability
foractswithmensrea
,too
a. NewYorkCentral

case

See
NewYorkCentral&HudsonRiverRailroadCompanyv.UnitedStates
Acorporationmaybeheldcriminallyliablefortheactsofitsagentsactingwithinthescopeof
theirauthority
Note:
o Thiscasetookawayimmunityfromcrim.prosecutionthatcorpspreviouslyenjoyed.
GoodFaithDefense
o Offeredtocompaniesin
civilactions
whenfacing
respondeatsuperior
intort
Thatis,whenacorporationactsingoodfaithwhileconcurrently,arogue
employeeactsotherwise
nd
o However,
in
UnitedStatesv.IoniaManagementS.A.
,the2
Circuitheldthatthere
was
noprecedentforanaffirmativedefenseforcorporatecriminalliability
Goodfaith
maybeconsideredbythecourtinsentencing
o Thereisnogoodfaithdefenseincriminallawforcorporations,rightnow.

FortheBenefit

Actionforthebenefitofthecorporation
isrequired
forcorporatecriminalliability
unlessitsa
strictliabilitycrimeinwhichcaseitdoesnotmatter.
o Thislineofanalysis
isusedinconjunctionwith
respondeatsuperior
(employerresp.
employeewhenemployeeactinginscopeofemployment)
When
prosecutingtheCORPORATION
,resp.superiorANDforthebenefitof
Ifyoure
prosecutinganindividual
,youlooktothestatute
See
StandardOilCompanyofTexasv.UnitedStates
(vic.li.Req.corp.benefittingfromacts)
CourtsaidthescenarioshouldbeaddressedbyborrowingfromtortmostoftenusedTest
inthesescenarios
o 1)Purpose
tobenefitthecorporation
,AND
o 2)Performed
byanagentwithinscopeofemployment
T
hecorporationdoesnotacquirethatknowledgeorpossessrequisitestateofmindessential
forresponsibility
throughactivitiesofunfaithfulservantswhoseconductundertakenforthe
interestsof
partiesotherthantheircorp.employer

See
UnitedStatesv.HiltonHotelsCorp.
(Corpsvic.lia.evenifemployeeactedagainstpolicy)
Acorporationiscriminallyliablefortheactsofitsagentsinthescopeoftheiremployment,
even
whereagentshaveactedagainsttheexpresspolicyofthecorporation,when
thecorporation
willprofitfromtheillegalactivity

Note:JuryUnanimity
Infederalcriminalcasesbroughtunder848oftheShermanAct,thejurymust
unanimously
agreenotonlythatthedefendantcommittedsomecontinuingseriesofviolations,
butalso
thatthedefendantcommittedeachoftheindividualviolationsnecessarytomakeupthat
continuingseries

RestrictingCorporateCriminalLiability
Corporatecriminalliabilityhascontinuallybeenthesubjectofcriticism
Federalv.MPC(ALI)
o Federalcourtsandmanystatecourtsusethecommonlaw
respondeatsuperior
approach
inassessingwhethertoimputetheactsofanagenttothecorporationforthepurposesof
criminalliability
MPCfocusesonwhetheractor
wasahighmanagerialagent
o TheMPCapproachiscriticizedbecausehigherupsdontnecessarilydothesesortsof
thingswhataboutlittleguys?
RespondeatSuperior
approachisthe
majorityapproach,
anditis
usedinmost
jursidictions
The
ALIsMPC
approachistheminorityview
CorporateDissolution
o MelroseDistillers,Inc.v.UnitedStates
theSupremeCourtallowedacriminalaction
againstacorporationthathadbeendissolved
ProceduralConsiderations
th
o ACORPORATIONdoesnothave5
privileges
o ITDOEShaveACPand4thAmendmentrights,whethercorp.liabilityornot

CollectiveKnowledge
Byaggregatingtheactsandomissionsof
twoormore
naturalpersons
actingasthe
corporation(withinscopeofemployment)
,the
actusreus
and
mensrea

for
corporatecriminal
liability
canbeobtainedthroughcollectiveknowledge

When
multiple
actorswho,collectively,satisfytheactus/mensofthecrimebeingalleged,
youmayuse

thisdoctrinetosuetheCORPORATION
asanalternativeto
respondeat
superior
See
UnitedStatesv.BankofNewEngland
(CKDexample)
"Thebank'sknowledgeis
thetotalityofwhatalloftheemployeesknowwithinthescopeof
theiremployment
"

DeferredProsecutionAgreements/NonProsecutionAgreements
Corporationsrarely,ifever,gototrial
o Instead,theyoptforaDPA,aNPA,oraplea
DPA
o Actuallygoesthroughthecourtprosecutionisfiling,orabouttofiletheaction,andthe
twopartiesreachanagreement
Thecourthasitinfrontofthemthatthepartiesareaskingfora
deferral
ofthe
prosecution
Thereisalistoftermsuponwhichsaiddeferralisbasedupon
NPA
o DoesntgothroughthecourtstheattorneyforthatcorporationandthelocalassistantUS
attorneygettogetherandwritealettertoeachotherputtingforththetermsofthe
agreement
Noinformationorindictmentisfiledthereisnothinginthecourtrecordsits
justanagreement
o Termssuchashowmuchthecorporationwillbefined,howmuchorwhatkindof
complianceprogramtheyllputintoeffect,whattypeofmonitormaybeputintoplaceto
overseeandmakesuretherescompliance,etc.
Plea
o Selfexplanatory
Trial
CompliancePrograms
o RoleofCorporations
InreCaremark,McCall
o Theabovecasesdemandyoumustcomplywiththelawcorporationsmusthave
complianceprogramstoensureindividualsarecomplyingwiththelaw.

IndividualResponsibility

See
UnitedStatesv.Park
(ResponsibleCorporateOfficerDoctrineexample)
Thetheoryofliabilityannouncedbythemajorityinthiscaseisknownasthe
responsible
corporateofficerdoctrine.
o Theremustbeevidencethatdefendanthad,
byvirtueofhispositioninthecorporation,
theresponsibilityandauthorityto
prevent
acorporateviolationoflaw
,
OR
to
promptlycorrect
aviolation.
WhengoingafteraPERSON,
justlooktothestatute!

TheMensReaElement

See
Ratzlafv.UnitedStates
o

Toestablishthatadefendantwillfullyviolatedtheantistructuringlaw,theGovernmentmust
provethatthedefendant
acted
withknowledge
thathisconductwasunlawful
.
NOTE:
o 4VehiclesForAppeal
Insufficientevidence
Evidencethatshouldnthavecomein,camein
Constitutionalissue
JuryInstruction(matteroflaw)
th
Ratzlaf
arguedthe4
onesaiditwastoovague
IgnoranceofthelawisnotanexcuseatCL,butexceptionsexist(
whenitisastatutethatuses
thewordwillfully,andwhenitisastatutethatishighlycomplicatedinitsnature
See
Lambertv.California
Goodfaithrelianceoncounselcanbeexcuse,
See
Cheekv.UnitedStates
o
Agoodfaithbeliefthatoneisnotviolatingthelawnegateswillfulness
D/nhavetobeobjectivelyreasonabletoclaimthedefense
o Toestablishan
adviceofcounsel
defense,defendantmustestablishthat
Beforetakingaction,
Ingoodfaithsoughtadviceofcompetentattorney
Forthepurposeofsecuringadviceofthe
lawfulnessofhispossiblefuture
conduct
Andmadeafullandaccuratereporttohisattorneyofallmaterialfactswhichthe
defendantknew
Andactedstrictlyinaccordancewiththeadviceoftheattorneywhohadbeen
givenafullreport
Itdeterminedactionundertakenwith
knowledgeofitsprobableconsequences
andhaving
requisiteeffects
canbesufficienttofindliabilityunderantitrust
ConsiderAlso:
o Bryanv.UnitedStates
Thecourtfoundthatawillfulactwasoneundertakenwithabadpurpose.
o GLOBALTECHAPPLIANCES,INC.,etal.v.SEBS.A.
Willfulblindness
Theremustbean
affirmativeact
showingthattheindividualinquestion
hadknowledgeinthattheypurposelyavoidedlearningtheinformation.
TwoPartTest
o Subjectivebeliefafactexists
o Affirmativeactiontakentoavoidlearningit

AmbiguityinOtherElements

See
Dowlingv.UnitedStates
Copiesofcopyrightedworkscannotberegardedasstolenpropertyforthepurposesofa
prosecutionunderastatutecriminalizingtheinterstatetransportationofsuchproperty.
Longheldprincipleambiguityresolvedinfavor
ofdefense(lenitydoctrine)
o HUGEargumentinWCCcasesb/cthestatutesaresocomplex

Hobbes/GoingBeyondtheStatute

See
McCormickv.UnitedStates
(QuidProQuoRequired)(HobbsAct)

TheHobbsActprohibitscampaigncontributionsmadeinexchangefora
explicit
promiseor
favorableaction

itdoesnotprohibitcampaigncontributionsmadewiththe
anticipation
of
favorableaction.

See
Evansv.UnitedStates

(QuidProQuoforextortioncanbeshownthrupassiveexception),
McCormickreasoningthereforeaffirmed/supplemented)
Theinclusionoftheword"induced"inthedefinition
doesnotrequirethatthewrongfuluseof
officialpowerbeginwithapublicofficial.
o TheGovernment
needonlyshowthatapublicofficialhasobtainedapaymentto
whichhewasnotentitled
,
knowingthatthepaymentwasmadeinreturnforofficial
acts
thisispassiveacceptanceandsatisfiesthequidproquorequirement
NOTE
TheHobbsAct
and
bribery
are
twodifferentthings
o See
18USC201
Yetthedecisionaboveblursthem
o Briberyistakingabribe.
Caseabove:HobbsAct/Extortioncanbechargedw/oactionbypersonreceiving$

Extortion(1951)v.Bribery&Gratuities(201)HardtoDistinguishb/c
Evans

Apublicofficial
commitsextortion
underthecolorofright
when
heobtainsapaymentto
whichheisnotentitledknowingthatitwasmadeinexchangeforofficialacts
.
o INCONTRAST,
under201(bribery),gov.
mustalsoprovequidproquo
Itisimportanttonote,however,that
itisirrelevantwhetherthepublicofficial
infact
intended
toholduphisorherendofthebargain

itisenoughthattheofficialhadknowledgeofthe
payor'sintenttobuyofficialacts.
o Notwithstandingitspotentiallybroadreach,1951(extortion)is
narrower
than201
(bribery)inatleastoneimportantrespect:
Under201(bribery),
both
theofficialreceivingabribeandthepersonbribing
him
havecommittedafederalcrime

See
UnitedStatesv.SunDiamondGrowersofCalifornia
To
sustainconvictionforfederalbriberytheremustbeaclearquidproquolink

betweenthe
gratuityreceived

and

performanceofaspecificpast,present,orfuture"official"act
.
o It
is
not
acrimetoprovidepublicofficialswithgiftsorfreemeals
unless
theyareaimed
atrewardingaspecificactionbytheofficial

Mail/Wire/MoneyLaundering
Amailfraudprosecutionrequiresthegovernmenttoprove

o 1)Aschemedevisedorintendingtodefraudorforobtainingmoneyorpropertyby
fraudulentmeansand
o 2)Useorcausingtheuseofthemails(orprivatecourier)infurtheranceofthefraudulent
scheme
o Materialityisessentialtoprovingmailfraud
Thestatutesenormousbreadthallowsfederalprosecutorstousethisoffensetocombatmany
differenttypesoffraudulentconduct

RequiredComponents

1. Scheme
A. Sortofselfexplanatoryaplanofsomesort
2. Intendingtodefraud
(
DAmato
)
A. The
schemetodefraudneednothavebeensuccessfulorcomplete
i. Therefore,the
victims
ofthescheme
neednothavebeeninjured
B. Gov.mustshow
"
actualharmorinjurycontemplatedbytheschemer"
i. Misrepresentationsamountingonlytoadeceit
are
insufficient
C. Deceitalonenotenough

must
beharm
contemplatedor

caused
3. Materiality
(
Neder
)
A. CLfraud
required
a
misrepresentationorconcealmentof
materialfact
i. Therefore,
materialityISessentialelementofmail,wire,bankfraud
4. ofMoneyorProperty
A. TangibleProperty
(
McNally
)
i. Money,tangibleassets/property
B. IntangibleProperty
(
Carpenter
)
i. Therecanbeintangibleformsofpropertyofwhichavictimmaybe
defraudedpatents,copyrights,contractrights,etc.
ii. i.e.confidentialbusinessinformationembezzledwhenanemployeerevealsto
otherssoastodepriveemployerofexclusivepossession
1. This
eliminatesanyneedforashowingofactual/intendedeconomic
injurytoemployer
revelationitselfistheinjury
iii. Inlightof

McNally
and

Carpenter
(readtogether)
1. Req.ofecon.gainbydef.,&lossbyvictim(orprospectof)
2. BUT
,noreq.gain/lossbeproperty
asunderstoodbyCongress
C. IntangibleRights(toHonestServices)
i. Nounder
McNally
,butAntiDrugAbuseAct,incl.schemeorartificeto
defraud
includesaschemeorartificetodepriveanotherofthe
intangible
rightofhonestservices
.
1. Provision

coversonlybribery/kickbackschemes
(
Skilling
)
D. Licenses
are
NOTproperty

forpurposesofMailFraud(
Cleveland
)
5. MailingInFurtherance
(
Schmuck
)
A. Whetherthemailingispartoftheexecutionoftheschemeasconceivedbythe
perpetratoratthetime,

regardlessofwhetherthemailinglater,throughhindsight,may
provetohavebeencounterproductive

andreturnthehaunttheperpetratorofthefraud
ThisisSUBJECTIVE
B. Ifastepinplot,partofplot
eveninconsequentialmailings
canhurtyou
C. LimitationstoInFurtherance
i. Imperativeduty
imposedbystate
ii. Mailing
priorto
commencementofschemetodefraud
iii. Mailing
afterfruition
ofschemetodefraud
6. REMBEMER
theactivity
must
substantiallyaffectinterstatecommerce

(
Lopez
)

FurtherConsiderations
Carriers
o MailingsusingFEDEXorUPS
aresubjecttoprosecutionunderthemailfraud
statute
,followinganamendmentofSection1341(
money/property
)oftheViolent
CrimeControlandLawEnforcementActof1994
Privateorcommercialinterstatecarriers,too

TaxFraud/MailFraud
o Mailfraud
canbeacumulativeandalternative
chargetotaxfraud
o Mailfraudhasbeen
heldimproperforallegedincometaxevasion
duetotheexistence
ofparticularizedlegislation
o DOJ:
Onlyinexceptionalcircumstances
willtaxfraudbeapprovedformailfraud
prosecution
ParticularizedLegislationbartoMailFraud?
o UnitedStatesv.Simon

permitted
mailfraudprosecution
despite
theenactmentofa
specificMedicaidfraudstatute
(Majorityview)
o UnitedStatesv.Gallant
didnotallow
mailfraudprosecution
whereparticularized
legislationexisted
withinCopyrightAct
(Minorityview)
WireFraud
Paralleltomailfraudstatutewiththedifferingelementbeingthemethodusedinthetransmission
tobebymeansofwire,radio,ortelevisioncommunication
o Theaccused
neednotknoworforesee
thatthewirecommunicationwasinterstate
(
Bryant
)
Whetherornotadefendantknowsorcanforeseethatacommunicationis
interstate
,
theoffenseisstillmorallywrong
o Jurisdictionalhook:
Youmustprovethewiresgooutofstate
Tosupportaconvictionforwirefraud,thegovernment
mustprove
(Czubinski)
o (1)Thedefendants
knowingandwillingparticipationinaschemeorartificeto
defraudwiththespecificintenttodefraud
and
o (2)The
useofinterstatewirecommunicationsinfurtheranceofthescheme.
Ifnointenttodeprivecanbeproven,
thenaschemetodefraudisnotshown
REMEMBER
,

theactivity
mustsubstantiallyaffectinterstatecommerce

(
Lopez
)

MoneyLaundering
Disguising/retainingproceedsoffraudulent/illicitactivityinunlawfulway(
Yusuf
)
o Moneylaundering
mustbe
DISTINCT
fromthecrimebywhich$obtained
Moneylaunderingstatute
isaprohibitionofprocessingthefruitsofacrimeorofacompleted
phaseofanongoingoffense

RICO
18USC1962(ad)
enumeratesthe
fourtypesofprohibitedconduct:
o RICO
requires
thatthe
defendant
tobe/have
:
a)Usingincomefromapatternofracketeeringactivitytoacquireaninterestin
anenterpriseengagedin,ortheactivitiesofwhichaffectinterstateorforeign
commerce
,
b)

Acquiringormaintainingthroughapatternofracketeeringactivityaninterest
inanenterpriseengagedin,ortheactivitiesofwhichaffectinterstateorforeign
commerce
,
c)Conductingorparticipatingintheconduct,throughapatternofracketeering
activity,ofsuchaffairsofanenterprisethataffectinterstateorforeign
commerce
,or
d)Conspiringtofurtheranyoftheactivitieslistedin(ac)
18USC1964
extendsRICOto
civilproceedings

RequiredComponents

1. PatternofRacketeering

(PredicateOffenses,ALLfoundin18USC1961(ab)
a. ContinuityandRelationship
RequiredBetweentheActs(H.J.)
i. Continuity
canbe:
1. Open:
a. Shortterm,requiringathreatoffutureactivity
2. Closed:
a. Longterm,requiringrelatedactsoverasubstantialperiodof
time
ii. Relationship:
1. Atleast2predicateacts,andtheyMUSTberelated
a. Indelicato
factors:
i. Proofoftemporalproximity
ii. Commongoals
iii. Similarityofmethods
iv. Repetitions
b. Predicateactscanbethe
certainones,
stateAND/ORfederal,foundin1961
c. Stateoffensesmustbepun.by1+yearinprison/chargeableunderstatelaw
2. Enterprise
a. Types
i. Individual,partnership,corporation,association,orlegalentity,OR
ii. Unionorgroupofindividualsassociatedinfact
1. Purpose/relationships/suff.longevityofassociation(
Boyle
)
iii. See
Turkette
b. Distinctiveness
i. Indiv.mustbedistinctfromenterpriseCEOofcompanyisdistinctfrom
companyheusesitisasvehicleforRICOviolation(
Kushner
)
c. Enterprises=whollylegit.,infiltratedbyillegit.,orentirelyillegit(
Turkette
)
3. InterstateCommerce
a. TwoWaystoConnect
(O
nlyneed1
)
i. Engagedin
1. Mustbe
inter
state,smallamt.ofactivitymaybeok(
Robertson
)
ii. Affecting
1. Sufficientnexusw/interstatecomm.whenmin.connection
iii. Theconnectionmustresultfromactionsoftheenterprise
b. EconomicMotive
i. Organizations
w/o
aneconomicmotive
canstill
affectcommerceeconomic
motiveNOTrequired(
NationalOrganizationforWomen
)
4. Nexus(THISONLYAPPLIESTO18U.S.C.1962(c))
a. OperationorManagement
(
Reves
)
i. ActorbeingchargedmustbeinvolvedintheoperationORmanagementofthe
enterprise
1. Showssuffi.connect.toenterprisewarrantingRICOliability
ii. Operation
mayormaynot
belimitedtouppermanagementfootnotesays
Courtnotdecidinghowfardownladdertheywouldgo
b. Simplyaidingandabetting
RICOviolation
NOTsufficient
forliability

OtherConsiderations
Conspiracy

10

RICOreq.onlyaconsp.tocommitprohib.actd/nneedovertact(
Salinas
)
Notethediff.b/tthisandGen.Consp.Stat.,which
DOES
req.overtact
Forfeiture
o Property
(18USC1963)
(a)(1)Literalprofits,causalconn.toracketeeringactivity(
Rusello
)
(a)(2)Interestsusedtofurtheractivity/generateprofits,d/nneedcaus.conn.to
rack.activitylinkshowingusetofurth.enterp.issuff.
(a)(3)Proceedsofracketeeringactivity
(b)Extendspropertysubjecttoforfeitureto
intangible
o AttorneysFees
RelationBackPrinciple(
Angiulo
),18USC1963(c)
o 1963(a)(1)forf.lim.toprop.int.thatw/nhavebeenacq./maint.
BUTFORracketeering
Prop.musthavebeenacq.
AFTERRICOviols.
fromtimeofviolation+
o DOESNOTmatterifthepropertywastransferredduringtheviolations

RegulatoryOffenses
Usedtobestrictliability
thisisnolongerthecase
Regulatorystatutesarefoundthroughout
stateANDfederalcodes
VoluntaryDisclosure
o DOJpolicyencouragesselfauditing,selfpolicingandvoluntarydisclosuresof
environmentalviolationsactionsaremitigatingfactorsinenforcement
Althoughenvironmentaloffenses

arenotspecificallylistedaspredicateacts
foraRICO
prosecution,
mailandwirefraudhaveservedaspredicatesforRICOprosecutionsinvolving
environmentaloffenses

MensReaElement
Thereis
noconsistentmentalstate
requiredforalloftheregulatoryoffenses
Strict,

WhiteFuel
Willfulness,

Dye
Knowingly
(proofyouactedknowinglyusuallyinferable
fromcircumstances)
,

BronxReptiles,
Negligently,

Hanousek
Willfulblindness,

Buckley
o GlobalTechCase
mustdosomeaffirmativeactshowingavoidance,
ANDdeliberately
didittoavoidthetruth
usually
NOTrequired
toknowthelawbeingviolatedcourts
splitonwhetherresp.corp.officerdoctrineapplies
CONSIDER
U.S.v.InternationalMineralsandChemicalCorps
.:
whereprobabilityof
regulationissogreatthatanyonewhoisawarethatheisinpossessionof[dang.Chems.]or
dealingwiththemmustbepresumedtobeawareoftheregulation.

StrictLiability,see
UnitedStatesv.WhiteFuelCorporation
Defendantcouldhaveescapedliabilitybyprovingdischargeresultedfromactionsof3rdparty.
Highriskenterprisecarrieshigherburdenofresponsibility

Willfulness
See
UnitedStatesv.DyeConstructionCompany
o Omissionorfailuretoact
willfullydone

ifdonevoluntarilyandintentionally

NoKnowledgeProviso
(SecuritiesONLY)
If
youdonotknowaboutaregulation,youcannotgetprisontime

11

D/Napplyto10(b)or10(b)(5)securitiesfraud,butifa
minorregulation
andyoucan
proveyoudidntknow,
maystillbeconvicted,
butnojailtime
MensReaDeterminedbyMisdemeanororFelony
o ThemensreaforactsundertheFDCAmaydependupontheleveloftheoffense

Knowingly
See
UnitedStatesv.BronxReptiles,INC.
o Knowledgeoftheactiontaken,regard.ofwhetherornotknewofillegality
KnowingEndangerment
o FoundinRCRAandCWAcriminallyliableif,inviolatingotherprovisionsofRCRA,
placesothersindangerofgreatharmandknowledgeofdanger

WillfulBlindness
See
UntiedStatesv.Buckley
o Closingeyestoobviousfactsorfailuretoinvestigatewhenawareoffactswhich
deemedinvestigation
issufficient

Negligently
See
UnitedStatesv.Hanousek
o Apersonwhoactswith
ordinarynegligence
inviolating33U.S.C.1321(b)(3)
maybe
subjectedtocriminalpenalties.

IndividualsLiable
PersonsinCharge
See
ApexOilCompanyv.UnitedStates
o Itisimmaterialthatnocorp.officerordirectorhadknowledgeofthespillsthecorp.was
asmuch"incharge"asitsemployee,andemployee'sknowledgeisimputedtocorp.

ResponsibleCorporateOfficer
See
UnitedStatesv.MacDonald&WatsonWasteOilCompany
o RCOdoctrine
cannotapply
whentheoffensebeingcharged
containswithinits
provisionsanexpresselementofrequiredknowledgeoftheunlawfulactivitybythe
individualagainstwhomliabilityisasserted
o ThiswasaFELONYstatute
notastrictliabilityone
,suchasthe
Park
case

PerjuryandFalseStatements
Perjury
o Allowsfor
broaderrange
ofproceedings
o Hasthe
twowitnessrule
FalseStatements
o Havethe
recantation/retractiondefense
o Useoftwo
inconsistentstatements
toprovefalsity
issufficient
BOTH

perjuryANDfalsedeclarations
o Allowforextraterritorialstatements

Perjury,18USC1621
1621appliestoawidevarietyofcircumstances,includingcivildepositions
o SpecificoffenseperjurystatutesalsoexistthroughoutFederalCriminalCode

12

Materiality
o Perjuryunder1621requiresthestatementbematerial
Perjury
allowsforabroaderrange
ofproceedings(thanfalsedeclarations)
Perjury
hasa
TwoWitnessRule
o You
cant
justhaveonepersonsayitsalie
youmusthavetwo
o It
doesnot
havetobetwolivepeople(butcanbe)
o It
can
beoneliveperson(needaperson),
and
evidencesupportingit

See
UnitedStatesv.Bronston
(Perjury)
Although
petitionergaveresponseunderoaththatwasunresponsivetoquestionandwasarguably
falsebyneg.implication,
petitionerbelievedstatementtrue
andevadedcrim.liabilityforperjury
See
UnitedStatesv.DeZarn
(NOTaSCdecisionusedbypros.togetaroundBronston)
Unlike
Bronston
,
DeZarn'sanswerwas"unequivocal/directly/fully
responsive"context/contentkeydiff.here,despiteanswerbeingliterallytrue

FalseDeclarations,18USC1623
Useofthefalsestatementstatute

islimitedtojudicialorgrandjuryproceedings
FalseDeclarations
hasa
RecantationDefense
MUSTbegiventherighttodothis
1623
allowsuseoftwoinconsistentstatements
toprovefalsity

See
UnitedStatesv.Hixon
(FalseStatements,similarto
Bronston
)
Thestatementwasliterallytrue
,becausedefendantwas,infact,
employedbyacorporationhe
owned

andwasthusnotselfemployed
Whereastatementissubjecttotwoplausibleinterpretations
,
theburdenisonthegovernment
toshowthedefendantsintendedinterpretationwasthefalseone
1001t
obeguiltyofconcealment,
person
musthavealegaloblig.
todiscloseinfotogov.

ObstructionofJustice
Variety
ofStatutesemanatesfromacontemptstatute
1503GenericDueAdministrationofJustice
(canbechargedforcircumstancesthatalsofit
1512/1513
,whicharethemorespecificstatutes)
1512
Tampering
withawitness,victim,oraninformant
o NOTE:1512(c),
recentlyadded,

prohibitsthedestruction,alterationorconcealmentof
recordsrelatedtoanofficialproceeding
1513
Retaliating
againstawitness,victim,oraninformant
1519SarbanesOxleyAct
unclearwhetherextendstootherformsofobstruction

CONSIDER
Yatesv.UnitedStates
(fishcase,destructionofevidencefortossingfish)

See
ArthurAndersenLLPv.UnitedStates
F
ederaldocumentlawrequireda"consciousnessofwrongdoing"for
conviction
For
companiestobeconvictedof
corruptpersuasion
theremustbeanM.O.oftryingtoevade
justiceortryingtointentionallylietogov.
o Destructionofproperty(records)sothatthegovernmentcannotreviewitisnotcriminal
unlesssaiddestructionwasintendedtobecriminalasopposedtoameansof
fulfillingcompanypolicy.
Afterthiscase,
theSarbanesOxleyActwascreated
(18U.S.C.1519)
it

criminalizes
"knowing"destructionofdocumentswiththeintenttoimpedea"contemplated"investigation

13


TheFederalGrandJuryAsAnInvestigativeBody
Majorityofstates
abolishedthereq.offelonyindictment,therebyallowingprosecutorsto
proceed
byinformation
(ordinarily,onlyifsupportedbyamagistratesfindingofPCata
preliminaryhearing)
FEDERALSYSTEM
,a
prosecution

canonlyproceedbyinformation

innoncapitalfelony
cases
ifdefendantwaivedhisrighttoindictment
(FRCPro.7(b))

TheFederalGrandJuryProcess
Apoolofcitizensissummonedatrandom,and23arechosenatrandom
Sitforindefiniteperiodnottoexceed18monthsifthetimeperiodends,
youcantake
everythingyouhave,pickanewgrandjury,andcontinueunlessSOLbars
Grandjuryhearingsare
excessivelysecret(Rule6(e))
Ifatleast12agree
thatthereisPCtobelievesuspectcommittedthecrime,
thegrandjury
returnsatruebill
that,whensignedbyprosecutor
=
indictment
o Ifthegrandjuryconcludesthattheevidenceis
insufficient
,itreturnsanobill(orno
truebill),andthepreliminarychargesaredismissed

See
Branzburgv.Hayes
Requiringreporterstodiscloseconfidentialinformationtograndjuriesserveda"compelling"and
st
"paramount"stateinterestanddidnotviolatethe1
Amendment

GrandJurySubpoenas
DucesTecum
usedfortangibleevidence/
AdTestificandum
usedfortestimony
Failuretocomplyiscontempt,bothcivil/criminal
o Shillitaniv.UnitedStates
directscourtstolookfirsttocivilcontempt:
Courtshaveheldthatifimprisonmentofacontemnorbecomespunitiverather
thancoercive,thentheconfinementMUSTend

ObjectiveAchievedbyGrandJuryTestimony
ObtainingTestimonyFromReluctantWitnesses
o Compulsorymayintimidatewitness/thesecrecyrequirementsofthegrandjuryprocess
mayalsoencouragewitnessestobemoreforthcoming
o Witnesstestifiesoutofthepresenceofcounsel,thewitnessneednoteventellcounsel
exactlywhatwassaidbeforethegrandjury
FishingForDocuments
o Unlikethesearchwarrant,
asubpoena
ducestecum

canissuewithoutashowingof
PCpreferable,too,foradministrativeadvantages(partyservedmustbringallrecords
together/sortwhatsrequested/etc.)
o However,
whileasearchwarrantprovidesfordirectseizure,
asubpoenaprovidestimeto
respond,riskingdestructionofrecords
KeepingtheTargetIntheDark
o Apersonmaybeinvestigatedwithoutknowingtheyrethetargetofaninvestigation,
whatactivitiesarebeingexamined,orwhoisexaminingthem
ControllingPublicDisclosure
o Secrecyrequirementsalsohelpkeepthepublic/pressoutofthings
DeflectingClaimsofImproperMotivation
o GJseenasabarbetweenimproperprosecutionandinnocentindividuals

14


TheGrandJurySubpoena
FederalRuleofCriminalProcedure17
SubpoenasContent
o AdTestificandum
Thedocumentitselfisrelativelysimpleitinformstherecipientwhenandwhere
theymustappear/whatdocumentsorothertangibleitemstobring/nameofthe
federalprosecutorissuingthesubpoena
o DucesTecum
Theattachmenttothistypeprovidesthecriticalcontentofthesubpoenadrafted
th
broadlytoensureallrelevantdocs.provided,butnote5
amendmentprivileges
maypreventproduction

SubpoenaChallenges
The
mostcommongroundforrefusingtocomplywithagrandjurysubpoena
isthe
assertionofa
commonlaw,statutory,orconstitutionalprivilege
Indeterminingwhethertomovetoquash(17(c))
,considerallthecircumstancesandfactsof
thesituationalso,therearetacticsyoucanusetoyouradvantage
o i.e.wherethegovernmenthasaskedforimmensequantitiesofdocuments,information
controlmaybestbepracticedbygivingthemeverythingthatcouldpossiblyfallwithin
itsdemandsandthencountingonthelackofresourcesintheprosecutorsofficetofind
thepotentiallydamagingmaterial
Ifapartydecidestoobjectandtheirobjectionisrejected,thatoftenendsinthematterfor
thesubpoenaedparty
denialofamotiontoquashis
generallynotviewedasafinalorderand
thereforeisnotappealable
under28U.S.C.1291,whichlimitsappellatereviewtofinal
decisionofthedistrictcourts
o Asubpoenaedpartydoesnotfacesuchafinalorderunlessthepartycontinuestorefuse
tocomplywiththesubpoena,notwithstandingtherejectionofthemotion,andtheparty
subsequentlyisheldincontempt
o Theonlyexceptionrecognized
iswherethesubpoenaedpartypossessesdocuments
belongingtoanother,hasnosubstantialinterestinchallengingthesubpoena,and
thereforewouldnotbeincontempt
Appellatereviewofthedenialofamotiontoquashisallowedhere
onthe
groundthatinsistinguponsuchapartystandingincontemptwouldrender
impossibleanyreviewwhatsoever
Thesubpoenaedpartywhostandsincontemptafterthemotiontoquashisdeniedinorderto
pursuehisorherappealordinarilyfaces
civilcontempt
TheRecalcitrantWitnessAct:
Wheneverawitnessinanyproceedingbeforeanygrandjuryof
theUSrefuseswithoutjustcausetocomplywithanorderofthecourt,thecourtmaysummarily
orderhisconfinement.
<(normallynotimposed)
o Note
thatalawyermayberequiredtoassertaclaimonbehalfofaclient,includingthe
th
5
Amendment,andtheACP,andcouldbeforcedtosufferthecontemptinorderto
preservetherighttoappealthelowercourtsdecision
The
grantofamotiontoquashisappealable
bythegov.under18U.S.C.3731

Rule17(c):ObjectionstotheSubpoena
Canquashormodifyitongroundsthatitisunreasonableoroppressive
AGJhasbroadinvestigatorypowers,BUT
cannot
engageinFishingExpedition

15

Sometimes,mayuse
incamerareview
andtellJudgewhattheyknowthejudgewill
decidewhetherornotsubpoenajustifiedormaynarrowit

See
UnitedStatesv.R.Enterprises,Inc.
(Subpoenamustbereasonable)

Nixonstandard
was
inappropriateintheGJcontext
,andholdinginsteadthat
grandjury
subpoenasshouldbe
subjectonly
to

ashowingofreasonableness
o Reasonablenessisassumed,
butmayberebuttedbypartyseekingtoquash

OnSelfIncrimination
Testimony
Immunity
canbegiveninexchangefortestimony,butnotalways

th
TheActofProductionDoctrine
(5
barsprod.thatisincriminating,cangetPPimmunity)

See
Boydv.UnitedStates
th
The5
extendstothe
productionofdocuments

See
Fisherv.UnitedStates

th
Act
ofproduction
can
becompellingunder5
,
butnotdoc.content

anotherhas

CONSIDER
UnitedStatesv.Doe
(OnDocumentsfromaSoleProprietorship)
th
5
privilege
appliestotheactofproductionofthebusinessrecordsofa
soleproprietorship
,
but
doesnot
applytothe
content
ofbusinessrecords
CONSIDER

Doev.UnitedStates
(DoeII)
Signingaformdisclosingbankrecords
didnotcompeltestimony

ForegoneConclusionDoctrine
(
Fisher
)

IFitisa"foregoneconclusion"
thatrecordsexistandarepossessedbyaperson
,
producing
theminresponsetoasubpoena

isnotsufficientlytestimonialtomeritFifthAmendment
protection
Gov.mustshoww/reasonableparticularityitknowsofexistence/locationofdocs

See
UnitedStatesv.Hubbell
Ifawitnessisimmunizedvia
productionprivilege,both
theact
ofproducingAND
the
contents
,
CANNOTBEUSEDAGAINSTWITNESS

UNLESS
o Thegovernmentcanshowthatithas
priorknowledgeoftheexistence,location,and
authenticityofthedocuments
(aFC)

inwhichcasePPwillfailbecause
theactof
productionnolongerhastestimonialvalue
BUT
ifimmunityisgranted,prosecutiononthebasisoftheimmunizedconduct/production
isonlypossibleif
Kastigar
requirementsmet
Gov.bearsburdentoshowthereisnotaintin
theevidenceandthatithasanindependent,legitimatesourceforit

EntityDocuments

CollectiveEntityDoctrine(EntityException)

16

th
5
privilegedoesnotapplytoartificialentities
(suchascorporations)
ortotheircustodianof
records
whoclaimsthatproducingdocumentswillincriminatethecustodian
personally
such
entitiesactonlythroughagents
.

See
Braswellv.UnitedStates
A
custodianofcorporateorentityrecords,heldthosedocumentsina
representativerather
th
thanapersonalcapacity
corporationd/nhave5
priv.
(
Possibly
wontapplyifasmallfamilypartnership?)

ScopeoftheCollectiveEntityDoctrine

CloselyHeldBusiness

See
Amatov.UnitedStates
Noprivilegecanbeclaimedbythecustodianofcorp.records
,
regardlessofhowsmallthe
corp.maybe
[collectiveentity]rule
applicabletoonepersoncorp.
CorporaterecordsreceivenoFifthAmendmentprotection
evenafterdissolution

SupervisoryPowerOvertheConductoftheGrandJury

See
UnitedStatesv.Williams
Nogeneralrulerequiringprosecutorstopresentexculpatoryevidence
itisincumbentupon
the
defendant
topresentexculpatoryevidence.

ChallengestoUseoftheGrandJury

Consider
UnitedStatesv.ArthurAndersen,LLP
UnpublishedOrderChallengingContinuedUseofGrandJury
o AcourtshouldnotinterveneintheGJprocessabsentacompellingreason
SoleorDominantPurposeTest
o Abuse
ofprocessoccursONLYwhengovernments
soleor
dominant
purpose
in
conveningaGJistogatherevidencefor
analready
pending
litigation
Theexistenceofa
pending
indictment

d/n,perse,
bargov.fromusingtheGJtomakegood
faith,continuinginquiryinto
charges
notincludedinthatindictment

GrandJurySecrecy

See
Barryv.UnitedStates
TwoStepAnalysisemployedtodetermineRule6(e)violation
o 1)
Districtcourtmustdeterminewhethertheplaintiffhasestablishedaprimafaciecase
o 2)
Ifthecourtdeterminessuchacasehasbeenestablished,theburdenshiftstothe
accusedtoattempttoexplainitsactionsinashowcausehearing
Ifthisfails,aviolationoccurredandcourtdeterminesremedy

See
Inre:SEALEDCASENO.993091
PublicdisclosuresofinternaldeliberationsofOICprosecutorsthat
didnotdirectlyrevealgrand
juryproceedingsdidnotviolateRule6(e)
b/cdidnot"occurbeforeGJ

17

Searches

See
UnitedStatesv.Travers(Warrants,Overbreadth,OfficerGoodFaith)
Inholdingtheofficersactedingoodfaith
inthiscase,courtfoundasamatteroffactthat
agentsneitherintentionallydeceivedtheissuingmagistratebyomittingdetailsregardingthe
natureoftheirinvestigation,nordeliberatelyexceededthescopeofwarrantintheitems
seized/consultedw/attorneysalotprior

See
UnitedStatesv.SDIFutureHealth,Inc.
(Standingre:CorporateProperty,Overbreadth)
E
xceptinthecaseofasmall,familyrunbusinessoverwhichanindividualexercisesdaily
managementandcontrol,anindividualchallengingasearchofworkplaceareas
beyondhisown
internaloffice

mustshowsomepersonalconnectiontotheplacessearchedandthematerials
seized
factorssuchaspersonalproperty/locationkept/secured/custodyofitemwhenseized/etc.
th
otherwise,nostandingunder4

See
UnitedStatesv.Adjani
(ScopeofWarrants)
Searchesneednotbelimitedtopropertybelongingtotargetorsuspect
solongasthereisPCto
believethirdparty'spropertymightholdevidenceofacrime.

See
UnitedStatesv.Mittelman
(OnExcessiveSearches+Outcome/Remedy)
Incaseswherethereisa"flagrantdisregard"forthetermsofthewarrant,thedistrictcourtmay
suppressalloftheevidence,includingevidencethatwasnottaintedremedyusedonlywhenthe
violationsofthewarrant'srequirementsaresoextremethatsearchisessentiallytransformedinto
animpermissiblegeneralsearch.
o However,[a]criminalenterprisedoesnotexemptitselffromasearchwarrantby
conductingitsbusinessandkeepingitsrecordsinitslawyer'sofficeonlythat
outsidescopeofwarrantsuppressed.

Searchesv.Subpoena
Searches
areexpensive
Searches
req.particularity,andyoumaynotknowwheretolook
subpoenas
areverybroad
Searches
arenotsecretlike
subpoenas
nonotice/timetodestroy
search
STOPSthingsimmed.
Searches
requireprobablecause
subpoenas
dont,whichmakesthemeasiertosecure
Searches
req.PCifPClacks/isdeterminedlacking,search/evidenceseizedmaybeinvalidated
Searches
aresurprisesubpoenasarenot
Searches
cantakeadvantageoftheplainviewdoctrine
Searches
mayresultinpossibleincriminatingstatementsatthelocationsearched

Sowhatifthegovernmentshowsupatalawofficewithawarranttoseizeallofthefiles?
Callattyhewillsayletsbringthisalltothecourandthenhellcallthejudgeforahearing
o Judgewillappointanindependentpartyataintteamtosortthings
Then,thematerialsturnedoverwillbeonesdeterminednottobeprotectedbyACPandthose
thatthegovernmentcanprovetheyneed

SelfIncriminationPrivilege
AllwitnessescalledbeforetheGJmayexerciseitbytakingthewitnessstandandrefusingto
answerindividualquestionsonthebasisofit

18

TheprivilegemaybeusedbybothtargetsandsubjectsofGJinvestigation
o Targets
ApersonwhomtheprosecutororGJhassubstantialevidencelinkinghimorher
tothecommissionofacrimeandwho,inthejudgmentoftheprosecutor,isa
putative(alleged)defendant
o Subjects
ApersonwhoseconductiswithinthescopeoftheGJsinvestigation
ItisrecommendedbytheUnitedStatesAttorneyManualthatbeforesubpoenaingaGJwitness,
voluntarytestimonyshouldfirstbesoughtoutifnogo,thensubpoena
DOJpolicyto
adviseaGJwitnessofhisorherrightsasatargetorsubject
o Targetletters
Targetsmay,ofcourse,
requesttotestify
o Butrecall
Williams

norequirement
aprosecutorpresentexculpatoryev.
th
AdvanceAssertionof5
Privilege
o Uponreceiptofasubpoena,awitnessmayinformtheprosecutorthatheorshewill
exercisetheprivilegeastoallquestionsposedbytheGJ
o Ifatargetoftheinvestigationandhisorherattorneystate,inwriting,signedbyboth,that
th
thetargetisinvoking5
privilege,thewitnessshouldordinarilybeexcusedfrom
testifyingunlesstheGJandUSAtt.agreetoinsist
MirandaWarnings?
o UnitedStatesv.Mandujano
Evenifadequatewarningsofselfincriminationhadnotbeengiven,thatfailure
couldnotconstituteadefensetoaperjurycharge
WarningsRe:PendingGJWitnessStatus?
o TheUSAMdirectsprosecutorstoadviseatargetorsubjectoftheinvestigationoftheir
rights(911.151)
o See
UnitedStatesv.Washington
Notificationoftarget/witnessstatuswhenbeforeGJisNOTrequired
o TheDOJ,nevertheless,adviseswarningtargets

th
Waiverof5
AmendmentPrivilege

See
Rogersv.UnitedStates
Booksandrecordskeptinarepresentative
,
ratherthanapersonal,

capacity

cannotbethe
subjectofthepersonalprivilegeagainstselfincrimination
,eventhoughproductionofthem
mighttendtoincriminatetheirkeeperpersonally
Disclosureofafactwaivestheprivilegeastoitsdetails
If
thewitnesshimselfelectstowaivehisprivilege

anddiscloseshiscriminalconnections
,
heis
notpermittedtostopbutmustgoonandfullydisclose

Immunity
18USC6002,awitnesscanbegranted
use/fruitsimmunity
o Itpreventstheprosecutiononlyfromusingwitness'sowntestimonyoranyevidence
derivedfromthetestimonyagainstthewitness.
Butifpros.acquiresevidencesubstantiatingthesupposedcrime
independently
ofwitness'stestimony
witnessmaybepros.
o Gov.bearsburdentoshowthereisnotaintintheevidenceandthatithasanindependent,
legitimatesourcefortheevidence(
Kastigar
)

19

KastigarHearing:
Ahearingwhereprosecutionmustproveitscaserestsonevidence
other
thanprotectedstatementsandtheirfruits
o OnlytheAGoradesignatedofficeroftheDOJhasauthoritytograntuse
immunityanadministrativeagency,w/approvaloftheAG,mayalsograntit
Transactional
immunity,

which
completelyprotectswitnessfrom
futureprosecution

for
crimesrelatedtohisorhertestimony
o Reluctantlygranted
b/cthepersoncannotbeprosecutedatanypoint
,
whileuse/fruits
d/npreventsubsequentpros.oftheimmunizedwitness
GrantingImmunitytoDefenseWitnesses
o Courtswillgenerallynotgrantitw/ogovernmentrequest
,but
o UnitedStatesv.Ebbers
Defendantmustshow
thegovernmenthasusedimmunityinadiscriminatory
th
wayandhasforcedapotentialwitnesstoinvokethe5
byoverreachingor
deliberatelydeniedimmunityforthepurposeofwithholdingexculpatory
evidenceandgainingatacticaladvantagethroughsuchmanipulation,
AND
Defendantmustshow
thattheevidencetobegivenbyanpotentiallyimmunized
witnesswillbematerial,exculpatoryandnotcumulativeandisnotobtainable
fromanyothersource

TheProfferandLimitedImmunity
Aprosecutorcommonlywillrequirethattheindividualscounselmakeaprofferastothe
individualsparticipationandinformationthathe/shecanprovideconcernhereisthepossible
waiverofACP,andcounselwilloftenfirstobtainanagreementinwritingthattheprofferwill
notconstitutesuchawaivergov.mayalsodecidetonevergrantimmunityorofferitafter
obtainingev.fromproffer
o Aproffer
mayincludeareferencetoincriminatingdocumentsthattheclientcanidentify
and
givethegovernmentinformationabouttheexistence/locationofthedocuments
thatitwouldnototherwisehavehad,
andthusallowthegovernmenttoobtainthose
documentsbysubpoena
Ifawitnessgoestotrial,thegov.mayinsisttheprofferbeavailabletoitforusetoimpeachthe
individualshouldtheybelaterprosecuted/offercontrarytestimony

See
UnitedStatesv.Mezznatto
Absentsomeaffirmativeindicationthattheagreementwasenteredintounknowinglyor
involuntarily
,
anagreementtowaivetheexclusionaryprovisionsofthepleastatementrulesis
validandenforceable

ParallelProceedings
KeyIssue:
Evidencefromonebodytoanother
Delayingtheparallelproceeding
o Problemfordefense
o Maintainingselfincriminationprivilege
GrandJuryMaterial(secrecyissue)

See
UnitedStatesv.Stringer
(Simultaneous/nondisclosedcivilcriminvestigationsbygov).
The
governmentcanconductparallelcivilandcriminalinvestigations
withoutviolatingthe
dueprocessclausesolong
asitdoesnotactinbadfaith.

20


UsesofCivilDiscoveryinaCriminalProsecution

See
UnitedStatesv.Kordel
Circumstancesthat

wouldnotsurvivescrutiny:
o Situationswherethegovernmenthasbroughtacivilactionsolelytoobtainevidencefora
criminalprosecution
o Situationswherethegovernmenthasfailedtoadviseadefendantinacivilproceeding
thatitiscontemplatingacriminalprosecution
o Situationswhereadefendantisunrepresented
o Situationswiththepotentialforprejudicefromadversepretrialpublicityorotherunfair
injuries,and
o Situationswheretherearespecialcircumstancesthatmightsuggestthe
unconstitutionalityorimproprietyofacriminalprosecution

QuiTamActions(andtheFalseClaimsAct)
Aprivatepartycalledarelatorbringsanactiononthegovernment'sbehalf.
Thegovernment,nottherelator,isconsideredtherealplaintiff
o Ifthegovernmentsucceeds,therelatorreceivesashareoftheaward.
Tiesinheavilyw/
FalseClaimsAct
,aka"
LincolnLaw,
"whichallowspeoplenotaffiliated
w/gov.tofileactionsagainstfed.contractorsclaimingfraudagainstgov.
o Theactoffilingsuchactionsisinformallycalledwhistleblowing
Thegovernmentthenhasatleast60daystodecidewhethertotakeovertheaction
o Duringthattime,thecomplaintfiledincamera,mustremainunderseal:
IfthegovernmentchoosesTOintervene
,ithastheprimaryresponsibilityforprosecutingthe
actionandisnotboundbyanactoftherelator
o Therelatorhastherighttocontinueasapartytotheaction,butthegovernmentmaylimit
relatorauthoritytocallwitnessesandcrossexamineadversewitnesses,andmaydismiss
orsettleactionw/otherelatorsconsent
IfthegovernmentchoosesNOTtointervene
,therelatorhastherighttoconducttheactionand
nopersonotherthanthegovernmentmayinterveneorbringarelatedactionbasedonthesame
underlyingfacts

ShareholderDerivativeSuits
Itiscommonforshareholderstofileaderivativeactionrelatedwrongdoinginthebusiness
allegingdirectorsandofficersbreachedfiduciarydutiestothecompany
o WhileACPusuallyprotectsinternalcommunicationsrelatedtoaninternalinvestigation
ofthecompany,shareholderscanseektoobtainotherwiseprivilegedinformationaspart
ofthederivativelitigation

ProsecutorialRequestforStayDuringGJInvestigation
Gov.mayrequestthatacivilactionincludingthosebroughtbyfederaladministrative
agenciesbestayedpendingcompletionofthecrim.investigation
o See
SecuritiesandExchangeCommissionv.HealthsouthCorporation

ProsecutorialRequestforStayAfterIndictment

21

Whenthegovernmentindictsadefendantwhoisalsothesubjectofacivilenforcementaction,
thedefendantmaytrytotakeadvantageofthemoreliberalcivildiscoveryrulestogatherinfo
aboutthecriminalcasethatwouldnotbeasreadilyavailablethroughcriminaldiscoveryrules
o See
SecuritiesandExchangeCommissionv.Doody

DebarmentandSuspension
Administrativeactionsthatprohibitorlimitanindividualbusinessfromdoingfuturebusiness
withthefederalgovernment
Debarment
meansthepersonorbusinessisprohibitedfromdoingbusinesswiththegovernment
foradefinedperiod,withthreeyearsbeingtheusualmaximum
Suspension
isatemporaryexclusionimposedonasuspectedwrongdoerpendingoutcomeofan
investigationandanyensuingjudicial/administrativeproceedings
See
Robinsonv.Cheney

ProfessionalPracticeExclusion
TheSEChasadoptedRule2(e)thatpermitsittoexcludeanaccountantfrompracticingbeforeit
ifthepersonactsimproperly

TheRoleofCounsel
ClientIdentity
CorporateInternalInvestigations
o NowknownastheCorporateFraudTaskForce/FinancialFraudTaskForce
InitiallyheadedbyLarryThompson,ThompsonMemorandum
o IncreasednumberofDeferredandNonProsecutionAgreements(investigationsvia
monitors)
o FewtrialsbetweengovernmentandcorporationtheArthurAndersenEffect
o Corporationspayinghugefines
o SentencingGuidelinesCarrotandStickApproachIncentivestocomeforward,enter
intoagreements,andputintoplacecomplianceprogramsthatwillexerciseduediligence
topreventanddetectcriminalconduct
o Newstatutesrequiringreportingofviolations
o Resultofalloftheabove?
Growthofinternalinvestigationindustry
InternalInvestigations
o Unregulated(GAAPaccountingstandardsProfessionalconductrules)
o Unmonitored
o Theyaresupposedtobeinternal,secret,andconfidential
o Intheory
DOJorGovernmentAgency
notadirect
participantinacorporateinternal
investigation
o Inpractice
DOJhas
becomeanindirect
participantincorporateinternal
investigations
IndependentCorporateInvestigation
o Upjohnv.UnitedStates
Privilegeonlyprotectsdisclosureofcommunication,NOTtheunderlying
factsbythosewhocommunicatedwiththeattorney
Factsindoc.arentpriv.thedoc.itselfis,andcomm.madetolawyerare
o Bevill
TestControls
Individualmustshow
theyapproachedcounselforpurposeoflegaladvice

22

Individualmustdemonstrate
advicesoughtinindividualcapacityasopposed
torepresentativecapacity
Individualmustdemonstrate
thatcounselagreetocommunicatewiththemin
individualcapacity,knowingconflictcouldarise
Individualmustprove
conversationswereconfidential
(Onemore?)
o Almostallcourts
holdthat
privilegelieswiththecompany,nottheindividual
UPJOHNWARNINGS
o ProvidinganemployeewithanUpjohnwarningshouldmakeitclearthatthe:
ACPovercommunicationsbetweencompanycounselandemployeesbelongs
solelyto/iscontrolledbythecompany
Companymaychoosetowaivethisprivilegeanddisclosewhattheemployee
rd
saystoinhousecounsel/agovernmentagency/3
party

See
Inre:SUBPOENAEDGRANDJURYWITNESS
Aclientsmotiveforseekinglegaladviceisconfidentialaccordingly,
theprivilegeprotectsan
unknownclientsidentity

whereitsdisclosurewouldrevealaclientsmotiveforseekinglegal
advice,thusassistinginprosecution

ProvidingPaymentInformation

See
UnitedStatesv.Sindel
Afterreviewingtheincameratestimony,theEighthCircuitconcludedthatSindel
couldnot
revealJaneDoe'spaymentinformationwithoutrevealingthesubjectmatterofa
"confidentialcommunication."
Therefore,thecourtheldthat
theattorneyclientprivilege
protectedinformationrequired
onForm8300
withrespecttoJaneDoe.
NOTE:
Courtshaveheldthat
absentspecialcircumstances
,attorneysareREQUIREDto
provideinformationrequestedbyForm8300failuretocomplycanresultinfinesandcriminal
chargesagainstheattorney
o InCameraReview?
Canttellthejudgetoomuch,butenoughtomakeitknownyou
dontwanttodiscloseb/cofACP...pros.notpresent/exparte

SECDisclosureRules
Inthewakeofcorporatebullshit,the
SarbanesOxleyAct
wasenacted:
ItmandatestheSECissuerulesprescribing
minimumstandardsofprofessionalconductfor
attorneysappearingandpracticingbefore
including
ataminimum
arulerequiringan
attorneytoreportevidenceofamaterialviolationofsecuritieslawsorbreachoffiduciarydutyor
similarviolationbytheissueroranyagentthereoftoappropriateofficerswithintheissuer
and,
thereafter,tothehighestauthoritywithintheissuer
,
iftheinitialreportd/nresultin
appropriateresponse.
o Inaddition,
SECrulepermitsdisclosuretotheCommissionincertaincircumstances

SubpoenaofAttorneys
TheDOJpermitsfederalprosecutorstosubpoenaattorneysforinformationabouttheirclients,
butexercisesclosecontroloversuchsubpoenasbyrequiringpriorapprovaloftheAAGforthe
CriminalDivision

See
Impounded
(crimefraudexceptiontoACP)

23

Ifthegovernmenthassubmittedsufficientprimafacieevidenceofacrimeorfraudandlegal

advicewassoughtfromorgivenbytheattorneyinconnectiontherewith,
theattorneyclient
privilegehasbeenwaived,andthegrandjurymaycompeltheattorneytotestifyabouthis
communicationswiththetarget
o Absentthisfinding,theattorneymayvalidlyasserttheattorneyclientprivilegein
responsetothegrandjurysubpoena.
SupervisoryPowertoQuash
o Severalcircuitshaverecognizedasupervisoryauthorityinthedistrictcourtsufficiently
broadtojustifyquashingasubpoenatoanattorneyinanexceptionalcase

RighttoCounsel

See
UnitedStatesv.Stein
Federalprosecutors
violated
theSixthAmendmentrightsof13formerKPMGpartnersand
employees
bypressuringKPMGnottopaythedefendantslegalfeesinthecontextofthe
governmentscriminalinvestigationofKPMGandnegotiationwiththefirmofadeferred
prosecutionagreement
.
o The
prosecutorsconductconstitutedanunjustifiableinterferencewiththedefendants
relationshipwithcounselandtheirabilitytomountadefense
,
allinviolationofthe
SixthAmendment.
TheMcNultyMemo
o LimitstheDOJspolicyonconsideringpaymentofattorneyfeesforemployees
suspectedofbeinginvolvedinwrongdoing
PrinciplesofFederalProsecutionofBusinessOrganizations
,issuedbytheDOJinAugustof
2008,outrightwhichrejectsanyconsiderationofpaymentofattorneysfeesindecidingwhether
acompanyhascooperated
o Assumingfederalprosecutorsadhereto
Principles
,
Stein
wonthappenagain
StateAction
nd
th
o Thekeytothe2
circsapplicationofthe6
abovewasfindingthatKPMG
wasacting
onbehalfofthegovernmentindenyingtheattorneysfees

EthicalRegulations
MoststatesfollowABAModelRule3.8(e),whichappearstorequireafederalprosecutormeet
thesamecriteriaforissuanceofasubpoenatoanattorneyastheDOJrulesethicalrules
donot
createadditionalrightsforanopposinglitigant
McDadeAct(28U.S.C.530B)
o Adoptedtoprovideethicalstandardsforattorneysforthegovernment
TheActalsorequirestheDOJtoadoptrulestoimplementthestatute
o FederaldistrictcourtsoftenincorporateastatesrulesofPRfortheircourt
LawyerInvolvementinClientMisconduct
o Counselsrepresentationofaclientcantriggeranaccusationthatthelawyerengagedin
criminalconduct
o In
UnitedStatesv.Kellington
,courtheldthelimitinginstructionre:ethicalobligations
wasimproperandcausedamiscarriageofjusticeinimpactonthejurydeliberations
RegulatoryAgencyRepresentation
o Alawyerowesadutytohisclient,butalawyercannotcommitfraud.
o See

UnitedStatesv.Cavin
,

24

Alawyeraccusedofparticipatinginhisclientsfraud
isentitledtopresent
evidenceofhisprofessional,includingethical,responsibilities,andthe
mannerinwhichtheyinfluencedhim

excludingsuchevidencepreventsthe
lawyerfromeffectivedefense
ContactWithRepresentedPersons
o ModelRule4.2
o 1990,DOJ

ThornburghMemorandum,exempt.fed.pros.frommodelrules,specif.4.2
Thiscausedashitstorm
.McDadeActsupersedesit
o See
UnitedStatesv.Grass
CourtfoundthatevenifattorneyhadviolatedRule4.2hecouldshowthathedid
notdosoinawillful,deliberate,orintentionalmanner.

See
UnitedStatesv.Taleo
FerrerinitiatedthecommunicationswiththeU.S.Attorney'soffice,andHarrisresponded
properlybyclarifyingherethicalduties/advisingFerrerofherrighttocounsel
properactions

Sentencing
SentencingReformActof1984
,
whichbecameeffectivein1987and
createddeterminate
sentencing,eliminatedparole,andlimitedgoodtimereductionstofiftyfourdaysayear
afterthefirstyearofincarceration
CongressestablishedtheUnitedStatesSentencingCommissionasanindependententityinthe
judicialbranchdraftedoriginalGuidelinesafterreferraltoCongressandbecomelawfollowing
nonchange/vetobyCongress
o Congresscanlegislateamendmentstothemiftheywish,proposedbyCommission
Guidelinesmakewhitecollarcriminalserveasmuchtimeasothercriminalsandreduceleniency
Booker
SCheldthatsentencingcourtmust
consider
theGuidelines,
butneednotfollowthem
t
heyarebutoneofmanysentencingfactorstobeconsidered
o Booker
DOESNOTchangethecourtsinabilitytosentencebelowa
statutoryminimum
onitsowndiscretionthestatutorylimitwillalwayscontrol(asfarasminimumor
maximumgoes)BUT
acourtcanSOMETIMESdepartbelowastatutoryminimum
whenthegov.filesamotionaskingthecourttodoso,andthestatutepermitssuchan
actioninitstext

TheGuidelines
ComputingtheSentence
o Twonumericalvaluessetforeachguidelinecase:anoffenselevelandacriminalhistory
category
o While
Booker
returnedalargemeasureofsentencingdiscretiontothecourt,itdidnot
diminishtheimportanceofunderstandtheguidelinesapplicationineachcase
CourtstendtofollowtheGuidelinesmostofthetime,eventhoughtheyrenot
binding
o TheCourtalsolookstoconductdeemedrelevantundertheGuidelines,includingacts
andomissionsofthedefendantduringcommissionoftheoffense,inpreparationofit,or
inthecourseofattemptingtoavoiddetectionorresponsibilityforit
Forsentencing,beyondareasonabledoubtisnotneededtoholdthe
defendantresponsibleforanactthatincreasesthebaseleveloffenseasa
specificoffensecharacteristics,
butratherpreponderanceoftheevidenceis
sufficient

25

Relevantconductalsoseemstoincludelesserincludedoffenses
o Adjustmentsexistin5majorgroups
Victimrelated,defendantsrole,obstructingjustice,multiplecountconviction,
andacceptanceofresponsibilitybydefendant
Allofthesecanresultinmultiplelevelincreasesordecreasesofanoffense
o Theguidelinesexpressa
presumptioninfavorofconcurrentsentences
whencourt
sentencesadefendantalreadysubjecttoanundischargedterm
Exceptionisoffenseforwhichthestatutemandatesaconsecutiveoffensewhen
committedwhileincarceratedoronprobation
RelevantConduct
o UnitedStatesv.Williams
Scopeofconductmattersindeterminingrelevancy
SentencingWhiteCollarOffenders
o See
UnitedStatesv.Parris
Courtconsideredamountofloss,numberofvictims,thesophisticatedmeans,
statusasofficers/directors,roleintheoffense,obstructionofjustice
o NOTE:OtherFactors
Abuseofpositionoftrust,cooperation,use/utilizationofspecialskills,collateral
consequences
o See
UnitedStatesv.Lang
Courthelddefendantsabilitytocheatatcardswasnotaspecialskill
thresholdiswhetheraskillwasonethatusuallyrequiressubstantial
education,training,orlicensing
Abilitytocheatatcardsisuselessoutsidecrimeunlikeadoctor/lawyergone
bad,Liangabusednosocietaltrustbyappropriatingotherwisepositive
educationalinvestmentforillegalpersonalgain
Courtalsohelddefendantsextraordinaryeyesightwasnotspecial
skillintrinsicskillsthatarehumancapabilities,likemotorabilities,
arenotsufficientforsentencingincreases
PleaAgreements
SubstantialAssistance
o Guidelinesauthorizegovernmenttofileamotionrequestingajudgedepartundera
Guidelinerangeifdef.providessubstantialassistancetothepros.
Wadev.UnitedStates
,SCheldgovernmentdoesNOThaveadutytofilesucha
motionwhendefendantsubstantiallyassistedjustthepowertohowever,def.
entitledtoreliefofprosecutorsrefusaltodosogroundedinraceorreligion
o See
Melendezv.UnitedStates
Governmentmotionattestingdefendantsassistance
doesnotallowdeparture
belowalowerstatutoryminimum

UNLESSthegovernmentspecifically
requestssuchadeparture
PleaBargains

o TheGuidelineshavethreemaintypes
ChargeBargain
Acceptapleainexchangefordismissalofothers
SentenceRecommendation
Specific,AgreedSentence
AppellateReview
o See
UnitedStatesv.Tomko

26


SentencingCorporations
Convicted/chargedlikepeopleandGuidelinesprovidefactorstoconsider
o Remedy/harmcaused
o Iforganizationoperatedprimarilyforcriminalpurposeorbycriminalmeans,fineset
hightodivestofallassets
o Seriousnessofoffenseandculpabilityoforganization,determinedbystepstakenbyitto
preventmisconduct,levelandextentofinvolvementinortoleranceofoffenseby
personnel,andactionstakenbyorganizationafteroffense
o Probationarysentencesifandwhennecessarytoensurefuturesimilarconductprevented
Guidelineshavedeparture(upanddown)factorstoconsiderforcorporations:
Guidelineshaverequirementsforprobationarysentences
EncouragingCooperation
VoluntaryDisclosure
o Notalwaysadvantageoustodothisb/cfines,butlieandgetcaught=bad
DeterminingtheFine
o Organizationsconvictedofanoffensearesubjecttoafineandprobation,butcannotbe
imprisoned
o Startingpointforfineisdeterminationofbaseoffenselevel,thenconsiderationof
organizationsize,levelofinvolvementofseniorofficers,andthecooperationofthe
organizationinthegovernmentsinvestigation
Resultisaculpabilityscoreprovidingamultiplierforfinetobeimposed,
rangingfrom.05to2.0abilitytopaymaybecontested
o Criminalfinesmaystillberequiredevenifthecompanygoesintobankruptcy,
dissolves,ortransfersthecompanytonewowners

CorporateLiabilityv.IndividualLiability
See
UnitedStatesv.C.R.Bard,INC.
o C.R.BardInc.,amultinationalmedicaldevicecompany,agreedtopaythefederal
government$48.2milliontosettlethiswhistleblowerlawsuitthatallegeditsurological
divisionandwhollyownedsubsidiary,ProSeedInc.,paiddoctorsandhospitalskickbacks
toenticethemtoorderBardsproductsatinflatedpricestotreatMedicarepatientswith
prostatecancer.
Note
o CorporationsregularlyenterintoDPAsallowingthecorporationtocontinueitsbusiness
o DPAsandNPAsfrequentlyincludeaprovisiononfines,civilpenalties,andrestitution,
whichshiftsthedecisionfromthecourttotheDOJtodeterminepunishment

RobBlagojevich
Incicted
in2009on23charges
st
1
trialmistrial
o Onlyfoundguiltyduringitoflying
nd
Reindictedfor2
trial
o Guilty17/20charges
o All10countsofwirefraudacquittedononecountofbriberyandunabletoreachaverdictontwo
countsofattemptedextortion
SenateSeat
AbuseofPower/PaytoPlay
o Threatenedtowithhold$8millionofstatefundstoextractcampaigncontributionfromhospital

27

PostTrial
o 14yearsinprison3differencesentencesof168months,60months,and26months,concurrently
Willhavetoserve85%beforeparole/servingtimewithformerEnronCEOSkillinginColorado

BP

BPpledguiltyto11countsofmisconductfornegligentofficers/severalenv.Statuteviolations
o BPagreedtoa$4billionplea
o Civilstillpending
MultidistrictLitigation(MDL)
o MDL2179
BPfoundresponsibleforgrossnegligenceandwillfulmisconduct
o MDL2185
Securitieslawsuits
DOJfiledcriminalchargesagainst
o KurtMix,BPengineer,whodeletedtextsaboutoilspill
o DonaldVidrine/RobertKaluza
Sitemanagers,11countsvoluntarymanslaughterforactingnegligently
o TonyHayward,CEO
RemovedafterspillandsenttoSiberia
Kept17milliondollarpensionand1.6millionsalary
IsnowchairmanofGlencoreXstrata,aminingcompany/crudetrader

Grace
CTcorporationpackingmaterials/chemicals/Minedvermiculite
o Usedtoinsulateandavarietyofotherthings
ClaimsoverAsbestosinproducts
o EPAbeganinvestigationintoGraceasresponsetothecontamination
o DOJbegancriminalproceedings
ConspiracytoviolateCAA
o 3countsofCAAviolation
o Wirefraud
o Obstruction
Actuallygototrial36days
o FoundNOTGUILTYofeverything,althoughstockfellalmost50%,butwentbackup36%
$120millionindefensespending,wouldvecost$280millionifconvicted

ScooterLibby
PlameAffair
o JosephWilson,USAmbassador,senttoNigertoinvestigateclaimNigersellinguraniumtoIraq
Reportedthisinformationasnottrue(problematicoftheBushAdministration)
Documentswereobviousforgeries
o NYTarticlebyNicholasKristofcitedanonymoussourceforinfothatIraqinvasionwasbs
o AffiliationofValeriePlame(wifeofWilson)toCIAwasrevealedbyaWSJreportedinviolation
of50usc421
September2003askedCIAtoinvestigateleak
22monthinvestigationunderPatrickFitzgerald,USAG
o Tworeportersjailedforrefusingtotestify/disclose
JudithMillerinparticularhadconversationswithScooter
o ScooterclaimedtohavelearnedtheidentityofPlamesCIAaffiliationthroughTimRussert
UnitedStatesv.Libby
o Indictedin2005forobstruction,perjury,falsestatements
o FocusedonconversationsthatLibbyhadseveralreportersinwhichheclaimsthatknowledgeof
Ms.PlamesCIAstatuscamefromRussert

28

CourtfoundMr.LibbyfoundoutandinformedseveralotherofficialsofMs.Plamesrelationship
toWilsonweeksinadvanceofleakingoped
o Scooterchargedwithobstruction,perjury,andfalsestatements(acquittedofonecount)
30monthsinprison,$250kfine,400hourscommunityservice,2yearsprobation
o Bushcommutedprisonsentencebutleftotherpenalties

DonSiegelman
st
51
GovernorofAlabama
o On5/27/2004,indictedonfederalcharges,thenchargesdropped,thencasethrownout,yeah.
2006indictmentonbribery/mailfraudwithconnectionwithanewname,RichardScrooshy(CEOof
Healthsec)(sp?)
o WitnessNickBaileyhelpedsealthedealagainstSiegelman
ArguedbymanythiswasallpoliticalconnectionsdrawntoKarlRove

SamWaksal
FormerCEOofaImClonebiotechcompanythatatthetimeresearchedanticancerdrugs
ImClonealmostwentbankruptbyearly90s
o Erbitux,cancerdrug,producedbySloanketteringcharimanJohnMendelsohn
o Erbituxhadgoodresults
o 2001dealwithImClonefordrug
FDAlookedintothedrug
o Rejectedcornersbeingcut,etc.
o Waksalblamedrejectionondocumentationerror,butFDAsadthedrughadseriousissues
o Waksaltoldhisbroker,daughter,fatherandothersabouttheproblemsindrug
MarthaStewarttippedoffasresultofallthisb/chetoldherbroker
Waksalalsodatedherdaughter
o SECinvestigates
2002chargesagainsthimforinsidertrading,illegalinvolvementinvariouscrimes
Pleadguiltytoeverything,too!
Sentencedto7years,3monthsinprison
o $4millioninfineandbacktaxes
Permanentbanforbeingpublicofficerinapubliccompany
Marthagot5monthsinjail,30kfines
o 200kincivilfines,5yearprobation(?)
59monthsinprisonbeforerelease
o CurrentlylivinginSOHOsuppereastside
o StartedupKadmonPharmaceuticalsasfounderandCEO,privatecompanysonobanissues
Stillrich!
o ImCloneisstillaround,too
o Erbituxcamebackaround,anddoingverywell
Nojobsor401kslostfromanyofthis

JackAbramoff
FormerlobbyistandBushAdministrationinsider
o Spent43monthsinfederalprison
KnownforswindlingIndiantribesoutofmillionspromisingtheminfluenceandaccesstoland,casinos,etc
o Fraud,conspiracy,taxevasion,andwirefraud
Nowoneofthemoststaunchactivistsagainstcorruption,actually
85millionfromtribes
o 23millioninfraudulentwiretransferstobuyacasinogamblingboatinMiami
o Fundingtripsabroad
o Massivepoliticalcontributionsinexchangeforpoliticalfavors
ThemostharrowingpoliticalscandalsinceWatergate
70monthsinprison

29

o CasinoJackfilmbasedonhisstory

Cunningham
NavyPilotduringVietnamWar
Enteredpoliticsin1990afterbeingaTopGuninstructor
o In2005,USgov.filedconspiracychargesforbribery,taxevasion
Alsotaxevasion
2.5millioninillicitpaymentsandbenefits
o Briberyforassetsinvolvinghundredsofthousands,aswellasmiscellaneousitemsmillionsintax
evasion
Ultimatelyagreedtoforfeitassets
o Viapleaagreement
o Waivedanumberoftrialrights
Sentencedto100monthsinprison,3yearsupervisedrelease
o Servedentiresentence
Releasedin2/13,hascontemplatedwriting/becomingadvocateforjudicialreform

BobMcDonnell
Federalcorruptionchargesre:politicalgifts/donations/etc.

BernardEbbers
Oddjobsbeforerichness,startedw/hotelempire
Worth1.4billionatpeak
CofoundedLDDS(WorldCom)in1995
o Builtupcompanyw/loans,butamassinglotsofdebt/$400millionincompanysupport
o In2002,resignsasCEOandSECprobescompanysupportofhispersonalloans
11billioninfraud
o Largestbankruptcyfilingatthattime/17kjobslost
FoundguiltyofallchargesMarch15,2005
o Sentencedto25yearsinprison
StillservingsentenceinLouisianadonein2027at85yearsold

AaronSwartz
HacktivistandgeniusfromayoungagehelpedcreatedRSS
o HelpedprogramRedditbeforeitwassold
HeavilyinvolvedinOpenAccessMovement
o CowroteGuerillaOpenAccessManifesto
o CofoundedDemandProgress
SuccessfullyledcampaigntopreventSOPA
PACERPublicAccesstoCourtElectronicRecords
o Publicrecordaccess,butchargedperpage
o Aaronfeltthisshouldntcostanythingmodifiedaprogramtoautomaticallydownloaddocs
o Responsiblefordownloading18millionpagesworthapproximately$1.5million
Inlate2010andearly2011,wenttoMITanddownloadedatonofJSTORarticleswithoutpayingused
visitornetworktoaccessitfromamodifiedlaptop
ArrestedafterindictedJuly2011
o 2countswirefraud,11countscomputerfraud
o Facinglotsofprisonandnearly$1millionfine
CasehighlycriticizedJSTORandMITdeclinedtosuehimcivilly
o Prosecutoroffered6monthsinprisonforpleaonall13countsrefused
CommittedsuicideinJanuary11,2013
o Prosecutionhighlycriticizedandstatutes,too,forbeingoverbroad

RickPerry

30

Criticism
ofactivitieswhileinoffice
o TransTexasCorridor,
blastedforsolicitingprivatefundingmeanttobeasuperhighwayandit
neverhappened
o Issueswith
Merckdonatingmoneytohiscampaign($6k)
o Accused
ofbeingacorporatecrony
INDICTED
8/15/14
o Abuseofofficialcapacity/Coercionofpublicservant
o Aroseoutof
DWIarrestofRosemaryLehmberg,TravisCountyDA
.239BAC
Whileincarcerated,labeleduncooperativeandaggressiveneededtobechainedand
spitmasked
MotionstodismissfiledinAugustandOctoberof2014
o Currentlyanindependentprosecutortolookatthisentirething
ongoing

MichaelMilken
VeryinvolvedinmedicineandJunkBonds
Milkendidntlikethejunkbondsystem
o Changedthewaythingsworked
o Startedsellingjunkbonds
o Made550millionin1987
Morethangrossnationalproductofsmallcountries/Gavealottocharity,made1
million/day
DAGiulianiwentafterMikeforsecuritiesfraud/poss.insidertrading
o SEChadbeenwatchinghisfirm,Drexel,sincethemid1980s
98countindictmentfiled
o FirstmajoruseofRICOusedtogoafterahighlevelexecutive
o Now,theycantinvokeRICOforsecuritieslawviolationsalone
Sentenced,originally,to10yearsw/paroleafter3,plus3ofcommunityservice
o Filedamotiontoreduceserved24months/reorganizedanumberofthingsinprisonwhilethere
Marketactor/didntreallyharminvestors/offeredfullrestitution

TheQuizShowScandal/CharlesVanDoren
1994filmmadeaboutquizshowscandalsspecificallythe21scandal
o 21hadpoorratingsothershowsmorepopular
o VanDorencamefromagoodfamilyPHDinliterature,goodlooking,etc.
o PickedtoreplaceStempel(sp?)b/chelookedtooimmigranty(?)
Turnsoutshowwasriggedandcontestantswerecoached
Stempeleliminatedfromshow/tvaltogether,gotangryb/ctheyliedaboutkeepinghimontv,broughtthe
casetotheNYDA
o DAdidn'tcarenorealcrimecommittedatthetime
Noevidence/Nolawsbroken/Nocorroborationbecauseeveryonelied
o Goodwin,memberofHouseSubcommittee,tookinterest
InvestigatedVanDorenandNBC,tookfindingstoCongress
o Congresssubpoenaedeveryonefromtheshow/VanDorenfoundguiltyofperjurycameclean

AllenStanford
In2009,StanfordFinancial(hiscompany)investigatedforhigherthanmarketreturns
o LeakedmessagefromUSembassyreportedcompaniesunderhiscontrolengagedinbribery,
moneylaundering,andpoliticalmanipulation
Feb.2009,FBIraidedoffices
o InvestorsboughtcertificatesofdepositfromhisbankinAntiguaSomethingillegalhere?
Indicted,plednotguiltytoallcharged,maintainsinnocence
TrialsetforJanuary2011,buthewasdeemedunfittostandtrial
Inprisonnow,63,lotsofyearstogo

31

o ProsecutorsreliedheavilyonhisformerUniversityroommate
o TestifiedStanfordsbusinessempirewasafraud
o DescribedhowStanfordsenthimtoLondontodoillegalstuff
Stillclaimshedidnothingwrong
o 13convictions,incarceratedinFlorida,earliestpossiblereleaseis
2105,
andforfeited6.7billion
InSeptember2014,fileda299pagebrief
o Handwrittenbecausehesbroke/claimsUShadnojurisdictionoverseas

FrankSomething
Hugescamartist/imposter

DennisSomething
NJ/CEOofTYCO,madeitverysuccessfulthrewwifea2milliondollarpartysortofadickoverall
Didsomethingillegal.

32