Archive for July, 2012

Great departure upheld in federal white collar fraud charges

A really amazing result.

The “big dig” case from Boston. From 1990 to 2007 downtown Boston was torn up with major street renovation. Obviously, such a large project, plenty of fraud. Defendants were cement suppliers who provided inferior cement than the contract called for, and made false documents to cover it up. Literally hundreds of counts of typical federal fraud charges.

Defendants went to trial and lost. At sentencing, they argued that they had remorse, had unique family circumstances, and that in the end, the cement was tested and there was no harm done to the project, other than some minor repairs. The government depicted them as poster children for the corporate culture of greed and danger, and argued that the loss amount was 5 million, the amount that had been paid to them.

District Judge Richard Stearns found the loss amount for the government, which made the USSG 87-108, but found it extremely diminished in “value” as a sentencing factor, based upon the defendants’ arguments. He imposed a sentence of 6 months house arrest and 1,000 hours of community service.

The opinion, and the subsequent opinion affirming, is an excellent read and provides encouragement and thoughtful ideas. The case can be found at United States v. Prosperi 10-1739 July 13, 2012 (1st Circ. Court Appeals) .

July 23, 2012 Posted Under: Uncategorized   Read More