Justia U.S. 4th Circuit Court of Appeals Opinion Summaries

Felix Jacobo Salomon-Guillen, a native of El Salvador, entered the United States in 2009 on an O-3 visa as the spouse of Lucia Parker Salomon, a recording artist who later became a naturalized citizen. Salomon-Guillen became a permanent resident and managed his wife's music career. In 2013, he began working as a marketing director for a book publisher and engaged in a fraudulent scheme that cost the company $1.4 million. He was indicted for wire fraud, pleaded guilty, and was sentenced to 18 months in prison.The government sought to remove Salomon-Guillen from the country due to his aggravated felony conviction. He conceded removability and applied for adjustment of status and an inadmissibility waiver. The immigration judge denied his applications, finding that he failed to demonstrate that his removal would cause "extreme hardship" to his wife or mother, both U.S. citizens. The judge also concluded that Salomon-Guillen did not merit a waiver or adjustment of status as a matter of discretion due to the severity of his fraud offense.The Board of Immigration Appeals (BIA) affirmed the immigration judge's decision. The BIA, with Temporary Appellate Immigration Judge Denise G. Brown participating, found that Salomon-Guillen failed to show that his wife would suffer extreme hardship if she accompanied him to El Salvador. The BIA also agreed that he did not merit a waiver or adjustment of status as a matter of discretion.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court held that the regulation allowing temporary Board members to serve six-month terms did not preclude their reappointment for additional terms. The court also found that it lacked jurisdiction to review the BIA's discretionary denial of the inadmissibility waiver. Consequently, the petition for review was denied in part and dismissed in part. View "Saloman-Guillen v. Garland" on Justia Law

Rose-Marie Nsahlai was convicted for her involvement in a scheme to fraudulently obtain Paycheck Protection Program (PPP) loans. Nsahlai and her husband, Didier Kindambu, applied for two PPP loans using false information and then used the loan proceeds for unauthorized purposes. The fraudulent applications included fabricated payroll documentation created by Nsahlai, which falsely represented that the Papillon companies had substantial payroll expenses. The loans, totaling over $2.5 million, were approved and deposited into their accounts, and the funds were subsequently used for personal expenses, including the purchase of a new residence.The United States District Court for the Eastern District of Virginia convicted Nsahlai on charges of conspiracy to commit bank fraud, bank fraud, and unlawful monetary transactions. Before trial, the district court excluded evidence related to Nsahlai's claims of domestic abuse by Kindambu, ruling it irrelevant and prejudicial. Nsahlai argued that this evidence was necessary to explain her actions and lack of intent to commit fraud. The court allowed her to testify that she felt compelled by her relationship but prohibited specific references to abuse.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court's decisions. The appellate court found no reversible error in the exclusion of the domestic abuse evidence, concluding that it was not relevant to the charges and that any error was harmless given the overwhelming evidence of Nsahlai's guilt. The court also rejected Nsahlai's challenge to the jury instructions, determining that the instructions, when read as a whole, did not mislead the jury or affect her substantial rights. The court held that the instructions properly required the jury to find the elements of the charged offenses beyond a reasonable doubt. Thus, the Fourth Circuit affirmed Nsahlai's convictions. View "US v. Nsahlai" on Justia Law

The case involves defendants Aghee William Smith II and David Alcorn, who were convicted in the Eastern District of Virginia for their roles in fraudulent schemes that defrauded investors of millions of dollars. The schemes included marketing and selling phony investments in a dental services marketing program and fraudulent spectrum investments. The fraudulent activities primarily targeted elderly victims, resulting in significant financial losses.In the district court, Smith and Alcorn were tried together before a jury in February 2022. They raised three main issues on appeal: a joint constitutional challenge to the district court’s COVID-19 trial protocol under the Public Trial Clause of the Sixth Amendment, Smith’s separate challenge to the admission of videotaped depositions under the Confrontation Clause, and Alcorn’s challenge to the imposition of supervised release conditions.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court rejected Smith and Alcorn’s joint contention that the COVID-19 trial protocol violated their rights under the Public Trial Clause, finding that the protocol did not constitute a partial courtroom closure and was justified by substantial public health reasons. The court also rejected Smith’s Confrontation Clause challenge, concluding that the government had made a good faith effort to secure the witnesses’ presence at trial and that the witnesses were unavailable due to health concerns.However, the court found merit in Alcorn’s challenge regarding the imposition of supervised release conditions. The district court had failed to properly incorporate the standard conditions of supervised release during the oral pronouncement of Alcorn’s sentence, leading to a Rogers error. As a result, the Fourth Circuit vacated Alcorn’s sentences and remanded for resentencing.In summary, the Fourth Circuit affirmed Smith’s convictions and sentences, affirmed Alcorn’s convictions, but vacated Alcorn’s sentences and remanded for resentencing. View "United States v. Smith" on Justia Law

The case involves Izzat and Tarik Freitekh, who were convicted of various offenses related to a fraudulent Paycheck Protection Program (PPP) loan scheme. They received $1.75 million in PPP loan funds through false representations and fabricated documents. Izzat owned several businesses, and with Tarik's help, they submitted fraudulent loan applications. The funds were deposited into accounts controlled by Izzat, and he distributed some of the money to family members under the guise of payroll.The United States District Court for the Western District of North Carolina initially reviewed the case. Both defendants were indicted for bank fraud, conspiracy to commit wire fraud, and other related charges. During the trial, the court admitted testimony from their former attorneys, who had received and submitted falsified documents to the government. The jury found Izzat guilty of conspiracy to commit money laundering, money laundering, and making false statements, while Tarik was found guilty of conspiracy to commit wire fraud, bank fraud, conspiracy to commit money laundering, money laundering, and falsifying material facts.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court affirmed the district court's decisions, holding that sufficient evidence supported the convictions. The court found that the circumstantial evidence, including emails and checks, was enough to prove Izzat's involvement in the money laundering conspiracy. The court also upheld the district court's reliance on acquitted conduct to calculate the sentencing enhancements, noting that the evidence presented at trial proved Izzat's participation in the fraudulent scheme by a preponderance of the evidence. The court also found no error in the district court's application of the "intended loss" definition in the sentencing guidelines. Tarik's arguments regarding the calculation of the loss amount and the application of the sophisticated means enhancement were also rejected. The court concluded that the district court had properly considered the relevant sentencing factors and affirmed the sentences imposed. View "United States v. Freitekh" on Justia Law

Maggie Anne Boler was convicted of six counts of presenting false claims against the United States by submitting fraudulent tax returns to the IRS and one count of making a false statement on a Paycheck Protection Program (PPP) loan application. Boler submitted six fraudulent tax returns, receiving refunds on four, totaling $116,106. Additionally, she falsely claimed a $20,833 PPP loan. She was sentenced to 30 months in prison.The United States District Court for the District of South Carolina calculated Boler's sentencing range based on the total intended financial harm, including the two denied tax returns, amounting to $180,222. Boler objected, arguing that only the actual loss should be considered, not the intended loss. The district court overruled her objection, holding that the term "loss" in the Sentencing Guidelines could include both actual and intended loss.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court concluded that the term "loss" in the Sentencing Guidelines is genuinely ambiguous and can encompass both actual and intended loss. The court deferred to the Sentencing Guidelines' commentary, which defines "loss" as the greater of actual or intended loss. The court found that the district court correctly included the full intended loss in Boler's sentencing calculation. Therefore, the Fourth Circuit affirmed the district court's judgment, upholding Boler's 30-month sentence. View "United States v. Boler" on Justia Law

Eunice Nkongho was investigated for her involvement in a munitions export and money laundering conspiracy. Federal agents stopped her at the airport and seized her electronic devices. Nine days later, they obtained a warrant to search her phone, uncovering incriminating text messages. Nkongho was charged with money laundering and conspiracy to launder money. She moved to suppress the evidence from her phone, but the district court denied the motion. At trial, the government used her text messages and call history as key evidence. A jury convicted her, and she was sentenced to twenty-four months’ imprisonment and three years’ supervised release.The United States District Court for the District of Maryland denied Nkongho’s motion to suppress, holding that the seizure of her devices fell within the border search exception, which does not require a warrant. The court found that the scheme involved the theft and international transfer of military equipment, justifying the seizure. The court also rejected her argument that the nine-day delay in obtaining a search warrant was unreasonable, emphasizing the government’s heightened interest in the devices.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court’s decision. The appellate court held that the agents had probable cause to believe Nkongho was part of an international munitions export conspiracy, justifying the seizure of her devices under the border search exception. The court also found that the nine-day delay in seeking a search warrant was not unreasonable, given the agents’ need to consult legal counsel. Additionally, the court upheld the district court’s calculation of Nkongho’s sentence, including the loss amount attributed to her and the denial of a role reduction in the offense level. View "United States v. Nkongho" on Justia Law

Five members of the Baltimore-based gang, Murdaland Mafia Piru (MMP), appealed their convictions and sentences. The defendants were convicted of various crimes, including conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to distribute controlled substances, and possession of a firearm and ammunition as convicted felons. The United States Court of Appeals for the Fourth Circuit affirmed most of the convictions and sentences, but reversed two convictions for Shakeen Davis due to a violation of Rehaif v. United States, which requires the government to prove that a defendant knew he was a felon at the time he possessed a firearm. The court remanded the case for entry of a corrected judgment. The court rejected the other defendants' arguments, including claims of evidentiary errors, failure to enforce a plea agreement, and challenges to the reasonableness of their sentences. View "US v. Banks" on Justia Law

The case involves Robert James McCabe, a former sheriff of the City of Norfolk, Virginia, who was convicted of carrying out fraud and bribery schemes with contractors concerning medical and food services for prisoners in the Norfolk Jail. Over 20 years, McCabe provided favored contractors with inside information about competing bids for the Jail’s contracts, altered and extended contracts for their benefit, and received various things of substantial value in return. McCabe was convicted of 11 federal offenses, including charges of conspiracy, honest services mail fraud, Hobbs Act extortion, and money laundering. He was sentenced to 144 months in prison, plus supervised release.McCabe appealed his convictions and sentences, raising four contentions of error. He argued that his trial was unfairly conducted before a trial of a co-defendant, that the trial court erred by admitting hearsay statements, that the jury instructions were incorrect, and that the court wrongly applied an 18-level sentencing enhancement. The United States Court of Appeals for the Fourth Circuit rejected all of McCabe’s contentions and affirmed his convictions and sentences. View "US v. McCabe" on Justia Law

Patrick Sutherland was convicted of three counts of filing false tax returns and one count of obstructing an official proceeding. He managed several insurance businesses and routed his international transactions through a Bermuda company, Stewart Technology Services (STS), which he claimed was owned and controlled by his sister. However, evidence showed that Sutherland managed all its day-to-day affairs. Between 2007 and 2011, STS sent Sutherland, his wife, or companies that he owned more than $2.1 million in wire transfers. Sutherland treated these transfers as loans or capital contributions, which are not taxable income, while STS treated them as expenses paid to Sutherland. Sutherland did not report the $2.1 million as income on his tax returns. In 2015, a federal grand jury indicted Sutherland for filing false returns and for obstructing the 2012 grand jury investigation. The jury found Sutherland guilty on all charges.Sutherland appealed his convictions, but the Court of Appeals affirmed them. He then filed a 28 U.S.C. § 2255 petition to vacate his obstruction conviction and a petition for a writ of error coram nobis to vacate his tax fraud convictions. The district court denied both petitions without holding an evidentiary hearing. Sutherland appealed this decision.The United States Court of Appeals for the Fourth Circuit affirmed the district court's decision. The court found that Sutherland failed to show how the proffered testimony from his brother and a tax expert would have undermined his obstruction conviction. The court also found that Sutherland had not demonstrated ineffective assistance of counsel and thus could not show an error of the most fundamental character warranting coram nobis relief. View "United States v. Sutherland" on Justia Law

The case involves a group of Ghanaian investors who placed their funds with a Ghanaian private investment firm, Gold Coast, owned by the Nduom family, who are domiciled in Virginia. The Nduom family allegedly used a network of shell companies in Ghana and the United States to illicitly transfer the investors' funds out of their reach. The investors sued in a federal district court in Virginia, invoking a provision of the Racketeer Influenced and Corrupt Organizations Act (RICO) that authorizes a private cause of action for any person injured in his business or property by a violation of RICO’s substantive prohibitions.The district court dismissed the action, ruling that the plaintiffs had not alleged a domestic injury, which is a requirement for a private RICO plaintiff. The court considered the residency of the plaintiffs and the location of the money when it was misappropriated, both of which were in Ghana. The court also dismissed the plaintiffs’ state law claims for lack of subject-matter jurisdiction, as there was no diversity jurisdiction over the claims and the court declined to exercise supplemental jurisdiction over the state claims after dismissing the only federal claim in the case.On appeal, the United States Court of Appeals for the Fourth Circuit affirmed the district court's decision. The court agreed that the plaintiffs had not alleged a domestic injury, which is a requirement for a private RICO plaintiff. The court noted that the case involved Ghanaian victims who entrusted Ghanaian funds to a Ghanaian entity, with no expectation that their money would end up in the United States. The defendants’ unilateral use of American entities to complete their scheme did not domesticate an otherwise foreign injury. View "Percival Partners Limited v. Paa Nduom" on Justia Law