Federal Offenses

What is RDAP?

Published on: May 22, 2022 | By Conaway & Strickler, P.C.

The Residential Drug Abuse Program (RDAP) and the Non-Residential Abuse Program (NRDAP) are offered by the Federal Bureau of Prisons (FBOP) to assist inmates suffering from substance abuse issues.

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

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

The Department of Justice in the Northern District of Georgia Federal Court will add a New Pretrial Diversion Court

Published on: May 9, 2022 | By Conaway & Strickler, P.C.

On April 11, 2022, the Northern District of Georgia in Atlanta announced the creation of a new pretrial diversion court, the Accountability, Treatment, and Leadership Court “ATL Court“. It is formed with the Northern District of Georgia, the U.S. Probation Office, the U.S. Attorney’s Office, and the Federal Defender Program, and will be run by folks from each of these agencies who will be known as the ATL Court Team. Please note: The ATL Court is in addition to, and not a replacement of, the Northern District of Georgia’s existing Pretrial Diversion Program.

“THE ATL COURT MISSION: Our mission is to provide the opportunity to avoid some of the consequences of aberrant criminal conduct to certain individuals charged with non-violent crimes in the Northern District of Georgia who would most greatly benefit from intense supervision, education, or treatment.”

HOW ATL COURT WORKS

SEC Complaint, RICO, Securities Fraud – biggest case against financial crime in SDNY in a long time

Published on: April 28, 2022 | By Conaway & Strickler, P.C.

Manhattan federal agents arrested Archegos Capital Management founder Sung Kook “Bill” Hwang on April 27, 2022 on fraud charges, roughly one year after the investment firm’s huge losses back in March 2021. Department of Justice prosecutors are charging both Hwang and Patrick Halligan, the firm’s chief financial officer, with racketeering conspiracy, securities fraud and wire fraud offenses as part of schemes allegedly designed to “unlawfully manipulate” the price of publicly traded securities.

The 59-page indictment, filed in federal court in Manhattan, alleges the men and others at Archegos sometimes timed their trades to drum up the interest of other investors, while borrowing money to make bigger and bigger bets. The Department of Justice states, “Hwang and his co-conspirators invested in stocks mostly through special contracts with banks and brokers called “swaps.” As alleged, these swaps allowed Hwang to cause massive buying of certain stocks, including at carefully selected days and times, to artificially pump up stock prices. Hwang, Halligan, and their co-conspirators lied to banks and used a series of manipulative trading techniques to keep those prices high and prevent them from falling. The lies fed the inflation, and the inflation led to more lies. The scale of this alleged fraud was stunning. In one year, Hwang turned a $1.5 billion portfolio and fraudulently pumped it up into a $35 billion portfolio.” The effective size of the firm’s stock positions swelled to $160 billion — rivaling some of the biggest hedge funds in the world. The case marks the biggest financial-crime charges to come out of the Southern District of New York under the leadership of Mr. Damian Williams, who was sworn in October 10, 2021.

The SEC has also filed a civil complaint stating that Mr. Becker, the former chief risk officer at Archegos, and Mr. Tomita, the firm’s former top trader, had led discussions with the banks about the firm’s trading positions but that Mr. Hwang and Mr. Halligan had directed and set the tone for those discussions.

What are the current DOJ priorities?

Published on: April 1, 2022 | By Conaway & Strickler, P.C.

Attorney General Merrick Garland made recent comments about what he considered to be the Department of Justice’s top priorities for 2022. Since taking office in March 2021, Garland has tried to combat crime in a tumultuous time. He has been criticized for his handling of January 6 investigation and has stated it’s the most urgent probe in history.

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

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

PPP Loan Fraud Prosecutions Continue

Published on: July 13, 2021 | By Conaway & Strickler, P.C.

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When the PPP program was first created, it was meant to assist business left struggling by the Covid-19 pandemic. One of the key provisions of the program, was that the Small Business Administration (SBA) would guarantee the loan which meant that borrowers could secure loans more easily. As mentioned in a previous blog, the government in the spring of 2020 started to go after the most egregious and problematic PPP loan applications and payments and really ramped up prosecutions.

But now, the DOJ, IRS, SEC etc are shifting their focus to more complex investigations. We have clients where the government is scrutinizing every aspect of the loan application such as

-was the box checked stating that you only had one entity

A deeper look at federal mailbox crime

Published on: September 2, 2019 | By Conaway & Strickler, P.C.

As is the case with most people in Atlanta, the thought of committing a federal offense has never even crossed your mind. The thought of playing a prank, however, may just have. You have probably heard before that damaging or destroying public mailboxes is a crime. Yet what you (and likewise many of those who have come to see us here at Conaway& Strickler, PC) may not be aware of is that it is a federal crime, and one that authorities take very seriously.

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

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

Understanding the impact of tax evasion on your future

Published on: July 29, 2019 | By Conaway & Strickler, P.C.

If you are actively employed in Georgia and are a recipient of income each on a consistent basis, you are required to fill out a tax return each year. The information you provide will be processed and verified by officials with the Internal Revenue Service who will verify that you are not missing anything on your forms that could indicate you are not filing your taxes properly. At Conaway & Strickler, PC Attorneys at Law, we are committed to advocating for people who have been accused of federal crimes.

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

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

What is tax evasion?

Published on: June 19, 2019 | By Conaway & Strickler, P.C.

The thought of paying taxes may not be anyone’s idea of a good time, and some people in Georgia make decisions to purposely report improper information on their tax returns so they do not owe as much money. This is known as tax evasion. This is different than tax avoidance, and there may be serious federal charges for those who intentionally fool the Internal Revenue Service.

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

Claiming personal-related expenses as business ones

Reviewing some consequences of immigration offenses

Published on: May 26, 2019 | By Conaway & Strickler, P.C.

Those who have been charged with any type of immigration offense may be under an incredible amount of pressure. These charges can make someone feel very vulnerable and completely unsure about their future. Unfortunately, many people have found themselves in this position over a misunderstanding or accidental failure to abide by various immigration laws. However, the consequences can turn their lives upside down regardless. If you are facing charges related to immigration, you should review your case carefully and be aware of how these charges could have an impact on your future.

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

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

An overview of the Georgia RICO Act

Published on: May 3, 2019 | By Conaway & Strickler, P.C.

Popularized by movies and television, many people in Georgia have heard of the Racketeer Influenced and Corrupt Organizations (RICO) Act. While it was enacted and is often associated with organized crime, the state’s RICO Act does not only apply to mobsters. Therefore, it is important for people to understand the act in order to help avoid unnecessary arrests and prosecutions.

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

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