By Laura K. Gasiorowski, Esq.

My partner Robert Stahl and I recently met with a potential client who was served with a Grand Jury Subpoena and was concerned about the potential criminal investigation and charges. This client came to the meeting with a detailed list of questions for us, many of which concerned our background, experience, and approach to handling a federal criminal case. These questions prompted me to think about what is the most important qualifications for hiring the right lawyer when a client is facing potential prosecution by the federal government.

Facing criminal charges is one of the most serious and stressful experiences anyone can endure. Whether you’re under investigation or have already been charged, one of the most important decisions you will make is choosing the right attorney to represent you. The stakes are high — your freedom, reputation, and financial future are all on the line. When the criminal charges might be federal, it is even more important to make sure that you choose the right attorney to defend you. When it comes to defending against complex federal charges, especially white-collar crimes such as fraud, embezzlement, or insider trading, not all criminal defense lawyers are the same. Here’s what you should look for when hiring a white collar criminal defense attorney:

1. Federal Court Experience Matters: Federal cases are vastly different from state criminal cases. The criminal statutes are more complex, and the penalties more severe. Federal cases also differ from state cases in terms of procedures, judges, prosecutors, and the applicable Rules. Make sure your attorney regularly practices in federal court, particularly in the jurisdictions where your case is pending (e.g., the Southern District of New York, Eastern District of New York, or District of New Jersey). At Stahl Gasiorowski, our primary practice area is federal criminal defense, which includes white-collar criminal defense and corporate investigations, in the District of New Jersey, and in the Eastern and Southern Districts of New York. We can, and have, handled federal criminal cases in Pennsylvania, California, Massachusetts, Maryland, Alaska and West Virginia as well.

Ask: – How many federal cases have you handled in this district? – What types of federal charges have you defended?

1. Specialization in White Collar Crimes: These cases often involve complicated financial transactions, regulatory issues, and intricate investigations that often require the assistance of investigators, experts and e-discovery providers. Electronic discovery in federal white collar cases can be staggering… in the terabytes… and require significant resources, time and familiarity with review platforms. In addition, all federal criminal cases require a deep familiarity and experience with the Federal Sentencing Guidelines, which your attorney must understand in order to assess your potential sentencing exposure, as well as the complicated law regarding determination of forfeiture, restitution and losses for Guideline purposes. In many cases, there are also parallel civil investigations, by the SEC, FINRA or other entities. Your attorney should have a track record defending clients charged with white-collar offenses like wire fraud, securities fraud, tax fraud, or conspiracy and other violations of federal law.

Ask: – Have you defended clients in cases similar to mine? – Do you have experience dealing with federal prosecutors, agencies like the SEC or IRS, or parallel civil investigations?

1. Reputation and Credibility: Federal prosecutors respect experienced defense attorneys who have a proven reputation in the courtroom. Judges, too, take notice of skilled advocates with a history of effective, ethical representation. Familiarity with the prosecutors (AUSAs) in the United States Attorneys’ offices, with the Judges on the bench, and with the Pretrial Services and Probation Officers is an asset when negotiating a plea, seeking to reduce charges, obtaining release or more lenient release conditions, or obtaining services for your client.

Look for: – Recognition by legal organizations – positive client testimonials – peer endorsements from other attorneys

1. Strategic Approach to Early Intervention: The earlier your attorney can get involved in your case, the better the chances of limiting your exposure to charges or penalties. Look for a lawyer who emphasizes early intervention — engaging with prosecutors before charges are filed can sometimes prevent an indictment altogether.

Ask: – How would you approach early negotiations with the government in my case?

1. Trial Experience: You may be surprised to learn that the vast majority of federal criminal cases resolve with pleas, not trial. This is because such cases are more thoroughly investigated than state cases, with greater resources. In federal trials, there is a significant “trial penalty” that may result in a more severe sentence. Sometimes, the best attorney may not be the one with the most trials under their belt, because many white-collar defense attorneys are successful by avoiding charges altogether, or resolving cases short of a trial through plea or alternative dispositions. That said, while many cases resolve through negotiations, hopefully resulting in no charges, reduced charges and a favorable plea or other disposition, you need an attorney who is fully prepared to go to trial if necessary. A lawyer who isn’t afraid to take your case before a jury can often secure better plea deals or dismissals simply because the prosecution knows they’re facing a formidable opponent who is willing and able to go to trial if necessary.

Ask: – How many federal jury trials have you conducted? – What were the outcomes of those trials?

1. Personal Attention and Communication: Federal cases can drag on for months or even years. Choose an attorney who will provide personal attention, keep you informed at every stage, and answer your questions honestly. At Stahl Gasiorowski, we take on a limited number of clients and cases so that we can provide that personal attention and devote the time necessary to thoroughly investigate and prepare a defense. We are criminal defense attorneys first and foremost. As a small firm, we provide big firm expertise, and obtain big firm results, at a better price point, and without layers of administrative assistants and lower level associates. Our partners will be handling your case.

Ask: – Who will be handling my case day-to-day? – How often will I get updates?

Bottom Line: If you or your business is under federal investigation or facing white-collar criminal charges, choosing the right lawyer is your first line of defense. Don’t settle for general criminal defense — find an advocate with federal experience, a deep understanding of white-collar law and the sentencing guidelines, and a reputation for winning tough cases or achieving good results with alternatives to incarceration, favorable pleas or non-prosecution agreements.

If you’d like a confidential consultation to discuss your federal case, contact us today. We have extensive experience defending individuals and businesses in federal courts in New Jersey and New York, and we’re ready to fight for you.

Stahl Gasiorowski Criminal Defense Lawyers have successfully represented hundreds of individuals under complex federal and state investigations with terabytes of discovery. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Ms. Gasiorowski at lkg@sgdefenselaw.com or Mr. Stahl at rgs@sgdefenselaw.com.

Federal agents and AUSAs serve subpoenas that demand the production of huge amounts of documents and data. They seek search warrants that authorize the seizure of every electronic device at the location to be searched – computers, servers, external hard drives and cell phones. They seize tens of thousands of emails, texts and other forms of communication from businesses and individuals. This common investigative tactic results in an exponential growth in seized data to be reviewed and turned over in discovery to the defense.

A few years ago, after several high profile cases exposed the Department of Justice’s failures in processing and timely disclosing seized data to the defense, the DOJ told U.S. Attorney’s Offices around the country to collect less evidence. In late 2022, a training program was implemented to teach more than 6000 federal prosecutors to be more selective in the evidence sought and seized. This was the so called “smart collection” approach.

This approach was developed because DOJ struggled to fund and find the software and personnel needed to store and analyze the volume of electronic evidence seized. In fiscal year 2023, DOJ requested $27 million for U.S. Attorneys’ offices “e-Litigation modernization”, including 52 new positions and technology upgrades. This was in addition to DOJ’s $1.5 billion e-discovery vendor services contract awarded in 2020 and set to expire in 2027.

Putting aside the government’s issues and budget, seizures of terabytes of data require an enormous expenditure of time and resources for the defense. Effective review of the data requires hosting a search platform that can search millions of pages for key words, names and dates in an expedient fashion. Outside vendor platforms can cost thousands of dollars a month just for the platform. Add to that the time spent by paralegals and associates conducting the actual searches and initial review of the documents, and then the further review by the attorney handling the case. One can quickly see that only well-funded clients, or ones with some type of insurance or corporate backing, can afford zealous representation.

The costs for the review of massive amounts of documents and other data, coupled with potentially much lengthier prison sentences post-trial rather than a negotiated plea, account for the 95-97% rate of pleas in the federal system. Few individuals can afford the costs of a trial – legal and discovery fees, expert witness fees and the so-called “trial penalty” (harsher sentences after a loss at trial).

DOJ must do better at seizing and turning over data that falls within the confines of the items authorized to be seized in the warrant, and limiting the scope of the documents sought in grand jury subpoenas. Courts must enforce discovery obligations on the government and compel the government to produce the discovery in a timely and organized fashion that permits defendants to be properly and zealously represented, including those defendants that cannot afford costly search platforms.

Stahl Gasiorowski Criminal Defense Lawyers have successfully represented hundreds of individuals under complex federal and state investigations with terabytes of discovery. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rgs@stahlegasiorowski.com Ms. Gasiorowski at lkg@stahlegasiorowski.com.

Back in February, the Department of Justice’s Criminal Division Fraud Section released its annual review. Of the Fraud Section’s three litigation divisions, Health Care Fraud, Market Integrity and Major Frauds and Foreign Corrupt Practices Act, Health Care Fraud is the largest with nearly twice as many trial attorneys and the most active unit.

In addition to the usual statistics about the number of attorneys, defendants charged and number of trials, the report also announced a change in how their trial attorneys are assigned in the field. Previously, trial attorneys were assigned to strike force cities in 24 judicial districts. Under the new deployment, the cities are grouped into regions allowing a broader approach and sharing of resources in wider areas.

The report noted that enforcement actions were prioritized in areas involving pharmaceuticals, telemedicine, laboratory testing and durable medical equipment. There is also an emphasis on vulnerable populations, such as the elderly or addicted patients.

DOF continues to utilize its analytics unit to identify suspicious healthcare billing patterns and geographic hot spots for fraudulent activities. The analytics unit, formed in 2018, provides proactive referrals based on the data analysis.

A recent survey of 2023 rates from top firms reveal attorney hourly rate increases of 8-14%. Notably, top partner rates now range from $2,100 to $2,720 an hour. The bottom partner rates from $1,025 to $1,995 per hour. Even more telling, first year associates, those lawyers who have just passed the Bar exam and have little to no real life experience in the practice of law, range from $660 to $895 per hour.

Most cases handled by big law firms are layered with multiple attorneys, ranging from young associates to upper class associates to junior and senior partners. Add all their rates together and you can have billings at tens of thousands of dollars an hour. There are additional costs as well, from paralegals with rates from $200 to $400 per hour or more, to discovery platforms that can costs thousands of dollars per month. Major corporations, high net worth individuals and the like can afford to pay, or have Directors and Officers insurance that pays, for these firms.

When facing criminal charges, the stakes are incredibly high. The attorney you choose can mean the difference between freedom and conviction. While larger law firms may seem to offer the best defense due to their size and resources, smaller boutique criminal defense firms present unique advantages that can significantly benefit clients. Here’s why the boutique firm of Stahl Gasiorowski Criminal Defense is your best ally in the fight for justice.

Personalized Attention

At Stahl Gasiorowski we handle fewer cases at a time compared to big law firms. This allows for a level of personalized attention that can be pivotal in criminal cases. The intimate setting ensures that your legal team knows your case inside out and is always accessible to address your concerns. You’re not just another case number; you’re a valued client with a bespoke defense strategy tailored to your unique circumstances.

Specialized Expertise

Stahl Gasiorowski specializes in criminal defense. Our attorneys are passionate about this area of law and have dedicated their careers to perfecting their craft. Such narrow focus results in a depth of knowledge and a nuanced understanding of criminal law that’s hard to match. This expertise offers keen insights into prosecution tactics, familiarity with local court nuances, and a refined skill in crafting compelling defense strategies.

Agility and Adaptability

The types of criminal cases Stahl Gasiorowski typically handle are complex that require extensive research and review a large amounts of discovery. Skill, combined with experience and flexibility, allow us to maximize our effectiveness. We are agile, able to adapt and respond rapidly to new developments without the layers of bureaucracy that can slow down larger firms. Our structure allows us to pivot strategies and tactics swiftly, a vital asset during the high-stress proceedings of criminal defense.

Cost-Effectiveness

Since Stahl Gasiorowski only handles complex federal and state criminal matters, we are able to operate with lower overheads and, as a result, can offer more cost-effective pricing structures without compromising the quality of legal defense. This means clients have access to high-caliber legal services and a dedicated defense without the daunting costs often associated with the larger firms.

Direct Expert Representation

At Stahl Gasiorowski, clients receive representation from highly skilled, experienced attorneys, not junior associates learning on the job. This means that your case is in the hands of an experienced attorney from start to finish, bringing a level of advocacy and proficiency that can be crucial in criminal cases.

Building a Strong Attorney-Client Relationship

Facing serious criminal charges is a profoundly personal and stressful experience. We offer the opportunity to build a strong, trusting relationship with our attorneys. This connection results in a more open exchange of information, which is essential for constructing a robust defense. The trust between our clients and attorneys produces results in court, presenting a united and convincing front to judges and juries.

Conclusion

While larger firms may seem impressive with their scale and brand recognition, when it comes to criminal defense, the individualized attention and services offered at Stahl Gasiorowski offer distinct advantages. Personalized attention, specialized expertise, agility, cost-effectiveness, direct representation, and a strong attorney-client relationship are necessities in building a formidable defense.

Stahl Gasiorowski has specialized in representing individuals and corporations in federal and state criminal investigations and charges. Our partners each have more than 30 years’ experience zealously defending clients in matters involving health care fraud, crypto currency marketing and transactions, wire fraud, bank fraud, money laundering, drug and gun conspiracies and tax fraud.

Stahl Gasiorowski Criminal Defense Attorneys actively and aggressively protect clients’ rights and offer big law skills at boutique firm prices. To contact us call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rgs@sgdefenselaw.com or Laura K. Gasiorowski at lkg@sgdefenselaw.com.

When facing the formidable gears of the federal justice system, individuals accused of bribery and extortion are immediately thrust into a complex legal arena where the stakes couldn’t be higher. These white-collar crimes carry severe penalties, including hefty fines and significant prison time. In such high-stress, high-stakes situations, securing an experienced criminal defense attorney is not just a strategic move—it’s an absolute necessity.

Understanding the Grave Nature of Federal Charges

Bribery and extortion are federal offenses characterized by an abuse of power or position. Bribery involves offering, giving, receiving, or soliciting something of value for the purpose of influencing the action of an official in the discharge of their legal duties. Extortion, on the other hand, refers to obtaining something of value through coercion. It is critical for defendants to understand that the mere accusation carries with it a social stigma that can tarnish reputations and careers irreparably.

The Defense You Deserve: The Role of Your Attorney

The law surrounding federal bribery and extortion is complex, with numerous statutes and regulations in play. It is extremely important to hire a criminal defense attorney with experience in federal criminal defense to navigate this labyrinthine legal landscape effectively. Federal court procedures, plea negotiations and trials can vary significantly from those of state courts, with their own discovery rules, rules of evidence, pleading standards, and judicial practices. Federal prosecutions are often much more complex than state proceedings, and also involve equally complicated forfeiture and restitution issues that require the assistance of an experienced federal practitioner. At Stahl Gasiorowski, our practice is solely devoted to criminal defense, and partners Robert G. Stahl, a former Assistant United States Attorney, and Laura K. Gasiorowski have more than sixty years’ experience in federal criminal defense between them.

Strategic Defense Planning

Every piece of evidence and every statement made in the context of these charges can profoundly impact the outcome of a case. Partners Robert Stahl and Laura Gasiorowski work diligently to evaluate the prosecution’s evidence and to develop strategies that can counteract the government’s case, utilizing skilled investigators and top notch expert witnesses where necessary.

In cases where evidence is substantial and our client wants to plead, Stahl Gasiorowski will work to secure a plea deal that limits the client’s sentencing exposure and the fines and restitution payments. Where the client may have a factual or legal defense, or insists on exercising her constitutional right to a trial, we use an aggressive pretrial motion practice, investigation and meticulous preparation to mount a defense for trial. Our years of experience mean that we can advise you on the risks and benefits of a plea or trial, and assist you in making the best decision for yourself and your family.

Perhaps most importantly, we ensure that all of your constitutional rights are protected throughout the legal process. Our skilled attorneys are a buffer against potential overreach by prosecutors and work to ensure that you receive a fair trial and the most zealous and aggressive defense possible.

If you or someone you know has been charged with federal bribery or extortion, the time to secure a defense attorney is immediately upon suspicion or accusation. Early legal intervention can be pivotal as it allows for preparation time and the possibility of engaging with federal investigators on your behalf before charges are formally filed.

The complexities of federal bribery and extortion charges demand a defense that is sophisticated, tactical, and rooted in comprehensive legal knowledge. The intervention of a criminal defense attorney is integral in safeguarding rights, securing fair treatment under the law, and ensuring that the defendant’s side of the story is heard. Do not underestimate the gravity of federal criminal charges—invest in the defense you unquestionably need.

For expert legal assistance and a defense that leaves no stone unturned, reach out to Stahl Gasiorowski Criminal Defense where our unwavering commitment to our clients is matched only by our deep understanding of federal criminal law.

Stahl Gasiorowski Criminal Defense Attorneys actively and aggressively protect clients’ rights and offer big law skills at boutique firm prices. To contact us call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rgs@sgdefenselaw.com or Laura K. Gasiorowski at lkg@sgdefenselaw.com.

Universities around the country have been aggressively investigating hazing. These investigations have been propelled by several tragic events that have resulted in fatalities or serious injuries usually resulting from excessive alcohol consumption.

Most university policies, as well as state laws, broadly define hazing as any type of conduct in relation to joining a fraternity, sorority, eating club or sports team that is not purely an athletic competition. Most universities have language similar to the following:

“Any student shall have the right to be free of all activities which might constitute hazing, while attempting to become a member of, or maintain membership in, a fraternity, sorority, athletic team, student organization, eating club, or other organization. Organizations, their members, and their prospective members are prohibited from engaging in or encouraging others to engage in activities that are defined as hazing.

Hazing encompasses a broad range of behaviors that may place another person in danger of bodily injury, or that demonstrates indifference or disregard for another person’s dignity or well-being.

Examples of hazing include but are not limited to the following:

• Ingestion of alcohol, food, drugs, or any undesirable substance.
• Participation in sexual rituals or assaults.
• Emotionally or psychologically abusive or demeaning behavior.
• Acts that could result in physical, psychological, or emotional deprivation or harm.
• Physical abuse, e.g., whipping, paddling, beating, tattooing, branding, and exposure to the elements, or the threat of such behaviors.
• Participation in illegal activities or activities prohibited by University policy.

Students who participate in hazing pledges are potentially subject to both criminal and university charges. Even the pledges who are subjected to hazing can and often are charged with violation of university hazing policy. Further, it is no defense to hazing that the person (pledge) consented to the activity.

Similarly, under New Jersey law, a person is guilty of hazing, “a disorderly persons offense, if, in connection with the initiation of applicants to or members of a student or fraternal organization, that person knowingly or recklessly organizes, promotes, facilitates, or engages in any conduct, other than competitive athletic events, which places or may place another person in danger of bodily injury. A person is guilty of aggravated hazing, a crime of the fourth degree, if that person commits an act which results in serious bodily injury to another person. Consent shall not be available as a defense to a prosecution under law.”

Often, students are faced with a difficult decision – if they fail to cooperate and are not candid with university disciplinary investigators, they can be disciplined for failure to cooperate and lack of honesty, while full cooperation can lead to a wider investigation of the activities and result in additional disciplinary action by the university. Conversely, anything they reveal in the university setting may be used against them in a parallel criminal investigation.

Stahl Gasiorowski Criminal Defense Attorneys has successfully represented a number of university students investigated and charged with hazing. We have the experience and skills to effectively navigate our clients through these complex investigations to achieve the best possible outcome. To contact Mr. Stahl or Ms. Gasiorowski, call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rgs@sgdefenselaw.com or Ms. Gasiowski at lkg@sgdefenselaw.com.

Law enforcement and intelligence agencies around the world use facial recognition technology and other AI in investigations to track targets’ movements and as evidence in prosecutions. While books and movies often portray this technology as highly advanced and foolproof, reality can be quite different. Recent cases have demonstrated that facial recognition technology is far from foolproof and may lead to even more misidentifications when identifying people of color.

Companies such as Clearview AI have contracts with law enforcement agencies across the United States. Clearview scrapes billions of photos from social media for its database. Photos from LinkedIn, Facebook, Instagram and the public web are uploaded to its database. For an annual fee, law enforcement has access to a face-based search engine. Obviously, a number of factors affect the reliability of the search results. The quality and resolution of the surveillance photo used for the search, the ethnicity of the subject, and the number and age of the comparison photos can all affect the results.

The most troubling, however, is that it appears that in a number of cases law enforcement failed to use other investigative means before seeking arrest warrants for the individuals “identified” by facial recognition software. As Clearview’s CEO made clear to the New York Times recently, when its technology comes up with an “initial result” that should be the starting point in law enforcement’s investigation, not the conclusion. In other words, facial recognition technology should only be used as one investigative tool that may provide a lead in an investigation that must then be coupled with other basic investigative steps.

A recent example of this is the case of Randal Quran Reid who was driving near Atlanta when he was stopped and arrested for alleged thefts in Louisiana. The police in Baton Rouge and Jefferson Parish had apparently used facial recognition from store videos purporting to show Mr. Reid stealing valuable items. Warrants for his arrest were issued and Mr. Reid was held for days pending extradition for crimes he did not commit. The NYT reports that it seems likely that local police simply used the faulty facial recognition identification to obtain the arrest warrants. It is difficult to know for sure because many law enforcement agencies do not reveal that such technology was used, or that it was the sole or primary basis for the warrant.

What should officials in Louisiana have done before issuing an arrest warrant based on facial recognition? First, actually compare the photos to Mr. Reid. According to the article, Mr. Reid is smaller, lighter and less muscular that the actual thief. Next, investigate to see if Mr. Reid was actually in Louisiana around the time of the thefts. How does one determine that? Examine credit card receipts for gas purchases or any other items in the state, travel records and EZ-Pass records, social media, license plate readers and the like. Conversely, look to see if there is evidence that Mr. Reid was in his home state during the thefts. In fact, had law enforcement checked, they would have discovered that Mr. Reid had never been to Louisiana.

Artificial intelligence is advancing at breakneck speed and law enforcement is eager to use all forms of technology to assist in their investigations. The key, however, is AI should only be used to “assist” not conclude. Traditional investigative techniques must be employed to corroborate and verify the alleged results of such database searches, lest more innocent people sit in jail hoping that their attorneys can free them.

Stahl Gasiorowski Criminal Defense Attorneys actively and aggressively protect clients’ rights and challenge the use of such AI based searches in pretrial hearings and trial. To contact Mr. Stahl, call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rgs@sgdefenselaw.com.

Many clients seek counsel after they have been interviewed by federal agents. They spoke with the agents after the agents surprised them at home or work. When asked why they spoke to the agents without contacting counsel first, clients routinely say that they thought it would be a brief interview and that they didn’t want the agents to think that they had anything to hide. Afterwards, many clients realize that the interview was lengthy, detailed and at times confrontational.

It’s understandable that people in that situation talk with the agents – they are approached without notice, the agents are friendly and suggest that it won’t take long and that they are simply trying to gather some information. Agents count on people’s desire to be helpful and non-confrontational. What the agents get are “statements” from people who have not had time to think about their answers, review documents or emails that might refresh their recollection, let alone meet and discuss the matter with counsel to determine whether it would be beneficial or harmful to be interviewed. Those statements become memorialized in a report of interview that can later be used as potential evidence against the client. In addition, if any of the statements are materially false, the client could be separately prosecuted for false statements to a federal agent, in addition to whatever criminal conduct was originally under investigation.

While it is understandable that agents often get people to speak with them without counsel, it is unfathomable that clients would speak with the media about their cases. One such glaring example of a client not following their attorneys’ advice is the founder of the now bankrupt crypto exchange firm, FTX. Sam Bankman-Fried has been on a media tour recently sitting down with Andrew Ross Sorkin of the New York Times, as well as reporters from Vox and an appearance on Good Morning America. All this is in addition to his letters, statements and tweets where he portrays himself as a naïve kid in over his head.

FTX lost billions in investors’ monies. The court appointed liquidator has said that he has never seen such a complete failure of corporate controls and was having difficulty determining how much cash FTX has or where it could be. Recent reports indicate that Bankman-Fried and other corporate officers took “loans” in excess of $4.1 billion, with $121 million going towards 19 properties in the Bahamas, private plane trips, lavish parties and other luxuries. In the face of a bankruptcy liquidator, investigations by the SEC, law enforcement and a Senate Hearing, Bankman-Fried has publicly made material statements about the alleged facts, his knowledge and intent, and company operations. For instance, he has said that he didn’t knowingly commit fraud, that the company was disorganized and overleveraged, no one at FTX was in charge of risk management or for determining potential conflicts of interest, and that he didn’t know if funds were commingled with another one of his companies, the hedge fund Alameda Research, that may have borrowed significant sums of FTX customers’ monies.

Bankman-Fried readily admits that he is granting media interviews against the advice of his attorneys, but that staying silent it’s not who he is and that he has a duty to talk to people. Disregarding the advice of his attorneys, and likely his parents who are Stanford University law professors, will almost certainly turn out to be a huge mistake that will ultimately be used against him by the SEC, law enforcement and potential victims in a civil action. While it is human nature to want to defend one’s self and reputation, and a natural desire to try to counter bad press, with public reports of misuse of funds and potential fraud, it is reckless to talk to the media about an ongoing investigation.

Stahl Gasiorowski Criminal Defense Attorneys actively and aggressively protect clients’ rights. To contact Mr. Stahl, call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rstahl@stahlesq.com.

For years, courts around the country have admitted “expert” testimony on bitemark analysis. These so-called experts have opined that bitemarks on human skin, often presented in sexual assault and murder trials, are distinct and “match” the defendant’s dental records.

A new comprehensive federal report from the National Institute of Standards and Technology (NIST), still in its draft/commentary stage, finds quite the opposite. The report states in relevant part, “forensic bitemark analysis lacks a sufficient scientific foundation because the three key premises of the field are not supported by the data . . . . First, human anterior dental patterns have not been shown to be unique at the individual level. Second, those patterns are not accurately transferred to human skin consistently. Third, it has not been shown that defining characteristics of those patterns can be accurately analyzed to exclude or not exclude individuals as the source of a bitemark.”

Bitemark analysis relies on the assumptions that teeth marks are unique, that they reliably transfer to surfaces such as skin, and that the marks can then be analyzed and linked to specific individuals. The NIST Report notes that it is not clear that bites leave distinct patterns because bites usually consist only of the front (anterior) teeth and the marks they leave can vary greatly depending on injuries, breakages, or obstructions. Second, skin is the surface most often analyzed for bitemarks, but it’s malleable and doesn’t reliably hold teeth marks over time depending on the rate and amount of swelling at the site, healing, and skin elasticity. Third, linking bitemarks that may or may not be unique, left on elastic surfaces that swell and heal, to people is riddled with uncertainty.

The Report’s key takeaways reveal that bitemark analysis lacks sufficient scientific foundation; dental patterns have not been shown to be unique; those patterns are not accurately transferred to human skin consistently; there is a lack of data to demonstrate that anterior (front teeth) dental patterns are unique; a number of studies have shown high levels of inaccuracies; and there is insufficient support in the scientific community as to the accuracy of such analysis.

Bitemarks, along with hair and shoe prints analysis, all have been debunked to a large extent in recent years as lacking objective test of scientific validity. Yet, scores of defendants remain in prison based, at least in part, on highly questionable “expert” analysis and testimony. The scope of the problem was evidenced in 2015, when the FBI admitted that nearly every one of the experts at its microscopic hair analysis lab had given scientifically invalid testimony. This erroneous testimony affected close to 270 cases, of those, 32 defendants were sentenced to death and 14 were executed or died in prison.

Stahl Gasiorowski Criminal Defense Lawyers aggressively defend our clients’ rights, including moving to exclude faulty analysis of crime scene “evidence”. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rstahl@stahlesq.com.

On June 23, 2022, the Supreme Court of the United States issued a decision that dramatically altered a citizen’s ability to carry a firearm outside one’s home. New York State Rifle & Pistol Assoc. v. Bruen, No. 20-843, was a challenge to New York State’s Law requiring justifiable need and good cause for an individual to secure a permit for concealed carry of a firearm. The Supreme Court held that the Second Amendment afforded individuals the right to carry a concealed firearm for self-defense and that the necessity of justifiable need would be an infringement on that right.

The Bruen decision has led to a dramatic change in New Jersey law. Prior to Bruen, New Jersey, like New York, issued only a handful of such permits as N.J.S.A. 2C:58-4 required every applicant to “demonstrate a justifiable need to carry a handgun.” That need was strictly interpreted.

Thus, on June 24, 2022, Attorney General Matthew J. Platkin issued Law Enforcement Directive No. 2022-07 urging all police departments to process concealed carry permits by continuing to implement statutory prohibitions, background checks and firearms familiarity as required by N.J.S.A. 2C:58-3(c)(1) – (11) and N.J.A.C. 13:54-2.4(b). With the change in law, Governor Murphy predicted that 200,000 applications for concealed carry permits would likely be filed. The system, however, was designed to handle a very small number of applications. For instance in 2014, in a state with a population almost 9 million residents, only 496 concealed carry permits were issued.

New applications have already overloaded the application process, police departments and the Courts. Several counties are requiring hearings before the Presiding Criminal Division Judge to determine the eligibility, restrictions, and approval of concealed carry permits. These courts, already severely backlogged with criminal cases that were on hold during the COVID-19 pandemic, are now deluged with carry permit applications. While it remains to be seen how the Courts will adjust to the volume of applicants, as well as, what new or additional restrictions may be introduced by law makers, one thing is certain, applicants will endure a long and arduous process. These delays will be met with pressure from applicants citing N.J.S.A. 2C:58-4, which states: “If the application is not approved by the chief police officer or the superintendent within 60 days of filing, it shall be deemed to have been approved, unless the applicant agrees to an extension of time in writing”.

In the wake of Bruen, Governor Murphy also implemented new training and safety requirements for those applying for a Firearms Purchaser Identification Card (FID). An FID is required for any New Jersey Resident to purchase a firearm. On July 5, 2022, Governor Murphy signed into law new revisions to N.J.S.A. 2C:58-3 to take effect immediately. Revisions included “In order to obtain a permit to purchase a handgun or firearms purchaser identification card, the applicant shall demonstrate that, within four years prior to the date of the application, the applicant satisfactorily completed a course of instruction approved by the superintendent in the lawful and safe handling and storage of firearms. The applicant shall be required to demonstrate completion of a course of instruction only once prior to obtaining either a firearms purchaser identification card or the applicant’s first permit to purchase a handgun.” In addition, a NJ FID Card must now display a color photograph and thumb print of the card holder and the card holder must now renew their FID Card every ten (10) years. NJ FID Cards previously had no expiration date.

The immediate implementation of these revisions caused further confusion and delays. A number of municipalities stopped processing applications, uncertain which training course(s) would be approved by the State Police Superintendent. Another issue involves the cards themselves. FID Cards now must bear both the photograph and thumbprint of the card holder. The current system, however, was designed to distribute approved FID cards in a digital format. Towns are now concerned whether new equipment to print the FID cards with photographs and thumb prints must be purchased. Indecision regarding the new statutory amendments reached its peak when the Bergen County Prosecutor’s Office issued a directive to all municipal police departments in the county to stop processing and issuing FID cards until clarification on fulfillment of new protocols was established by both the Superintendent and Governor.

In a speech to members of the Association of New Jersey Rifle & Pistol Clubs, the Governor announced that the Superintendent had approved a new online course to satisfy the training requirement of the new law. This instructional safety course, provided free of charge to first time applicants, was implemented on Monday, September 16, on the New Jersey Firearms Application & Registration portal found on the NJSP’s website. The Governor also confirmed that all County Prosecutors were to process first-time purchaser applications without the requirement of the new amendments.

Undoubtedly, New Jersey has one of the nations’ strictest set of gun laws. Experienced and skillful legal advice can greatly assist applicants navigating the ever-changing landscape of firearm ownership in New Jersey.

Stahl Gasiorowski Criminal Defense Attorneys have represented numerous clients facing a variety of issues involving firearms and firearm ownership at both the state and federal level. We actively and aggressively protect clients’ rights. To Contact Mr. Stahl, call (908) 301-9001 for the NJ office and (212) 755-3300 for the NYC office, or email Mr. Stahl at RStahl@StahlEsq.com

Last fall Deputy Attorney General Lisa Monaco announced the Department of Justice’s more aggressive approach to corporate compliance. In her policy speech this week, she highlighted a series of new policies and warned cooperating companies not to slow walk their disclosures, told prosecutors to speed up their investigations and expanded self-reporting programs throughout the Department.

Of note, Monaco acknowledged the past year’s decline in corporate prosecutions. In an effort to assist prosecutors’ timely investigations of individuals, Monaco said that any company that delays in turning over key documents and information to the government will risk losing some or all credit for cooperating. While companies are already required to turn over non-privileged information about employee wrongdoing in order to receive cooperation credit, Monaco said that the DOJ would view companies more favorably that claw back compensation from those employees. In her view, such a policy could deter wrongdoing — “compensation systems that clearly and effectively impose financial penalties for misconduct can deter risky behavior and foster a culture of compliance.”

Recidivist corporate offenders, even for unrelated prior misconduct, were warned that any prior violations would factor into DOJ’s treatment of new offenses. But, in an attempt to assuage corporate anxiety about prior misdeeds that resulted in either civil fines or criminal pleas, Monaco said that criminal resolutions more than 10 years old, and civil or regulatory settlements more than 5 years old, would be given less weight.

Lastly, Monaco said that every section of DOJ that prosecutes corporate crime will develop an individualized program to incentivize corporate self-disclosure. The common principles for these programs will include foregoing guilty pleas when the company self-reports, cooperates and remediates the misconduct. Further, monitorships, while back in favor and to be freely implemented when appropriate, will be circumscribed when the above requirements have been met. Prosecutors will be tasked, however, with making sure that the monitors are performing properly and stay on budget.

Federal investigations and prosecutions of corporations and individual employees and officers are complex and time consuming. There are a variety of factors that must be considered to properly defend the company and its employees while conducting an independent investigation of the alleged wrongdoing. Stahl Gasiorowski Criminal Defense Lawyers have extensive experience representing individuals and corporations accused of fraud. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rstahl@stahlesq.com.

A recent high profile case highlights the federal government’s ability to seize a convicted defendant’s accounts to satisfy an Order of Restitution after a conviction at trial or a guilty plea. The Second Circuit recently held that the retirement funds of Evan Greebel, the former convicted attorney and Martin Shkreli’s codefendant, could be seized in partial satisfaction of the restitution amount owed. Greebel was convicted in a separate 2017 trial for assisting his client Shkreli’s fraudulent taking of funds from Retrophin to pay Shkreli’s hedge fund debts, and for manipulating the stock price of Shkreli’s drug company. After conviction, Greebel was sentenced to 18 months in prison and ordered to pay $10.4 million in restitution.

In its opinion, the Second Circuit upheld the trial court’s decision that Greebel’s 401(k) accounts at his former law firm were subject to garnishment in an effort to collect the restitution amount. The Second Circuit held that the Mandatory Victims Restitution Act (MVRA) gives the government full access to retirement funds, and that ERISA’s prohibition on disbursing retirement funds to third parties is trumped by the MVRA.

It is well-established that under 18 U.S.C. § 3664(m)(1)(A), the Government may enforce a restitution order in the manner provided by subchapter B of Chapter 229, or 18 U.S.C. § 3613. An order of restitution may be executed in accordance with the practices and procedures for the enforcement of a civil judgment under federal law or state law or by all other available and reasonable means. 18 U.S.C. § 3613 (a) and (f).

The MVRA broadly permits the United States to enforce a restitution order “against all property or rights to property of the person fined.” Pursuant to §3613(c), once restitution is ordered, all the defendant’s property becomes subject to a lien in favor of the United States, and for purposes of debt collection, such lien is treated like a tax lien. §3613(c). Thus, any property the IRS can reach to satisfy a tax lien, a sentencing court can also reach in a restitution order – bank accounts, retirement funds, stock accounts and even Social Security benefits. Additionally, while periodic payments (usually monthly payments through the Probation Department) in satisfaction of a restitution order are limited to 25% of the defendant’s disposable income, one time lump sums payments, such as the garnishment of a retirement or bank account, are not limited.

The only issue left unanswered by the Second Circuit in Greebel was whether the government could seize all the funds, or whether it had to leave the defendant sufficient funds to pay the 10% tax penalty for early withdrawal of retirement funds. In many instances, the amount left to a defendant to pay tax penalties and taxes on garnishment of retirement accounts can be negotiated with the government.

Stahl Gasiorowski Criminal Defense Attorneys have represented scores of clients facing restitution and forfeiture orders and garnishments. We actively and aggressively protect clients’ rights. To contact Mr. Stahl, call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rstahl@stahlesq.com.

Earlier this month, the U.S. Department of Health and Human Services, Office of Inspector General (HHS, OIG) issued a special fraud alert advising healthcare providers to exercise caution when contracting with telemedicine companies. Such alerts are significant as they put providers on notice that OIG intends to investigate and prosecute potential fraud regarding telemedicine/. Such notices provide the opportunity for healthcare providers to review their practices and compliance, as well as list examples of suspect practices in the industry.

Historically, federal regulations limited the use and scope of telemedicine. It became widely available, however, during the COVID crisis that necessitated the loosening of government regulations. While a relaxation of regulations and restrictions offered patients greater access to physicians, it also opened the door to fraudulent conduct. In previous articles, we explored schemes involving compound medicines, genetic cancer screening (CGx and PGx tests) and durable medical equipment (DME) such as orthotic braces.

This latest fraud alert confirms that OIG is still aggressively targeting DME companies, laboratories and pharmacies using telehealth services. The OIG alert offers a non-comprehensive list of factors that they examine in potential fraud cases, including:

1. Patients that are referred to a practitioner through a telemedicine company, telemarketing, recruiter, call center, health fair or internet;
2. Practitioner has only limited access or contact with the alleged patient to meaningfully access the medical necessity of the services solicited;
3. Telemedicine company compensates the practitioner based on the volume of prescriptions and services;
4. Telemedicine company only provides services to federal health care program beneficiaries, and does not accept private insurance;
5. Telemedicine company only provides a single class of products such as braces, genetic testing, compound medicines – pain, scar and vitamin creams – thus limiting a practitioner’s treatment options; and
6. Telemedicine company does not expect its physicians to follow up with the patients regarding their prescriptions or services.

This alert expressly notes that proactive marketing that advertises free or low cost items or services covered by federal healthcare programs and exclusively marketed to such beneficiaries is “suspect”. Additionally, any program that limits a practitioner from contacting a patient to follow up or offer other medical services is suspect.

While HHS, OIG alerts provide valuable guidance for practitioners and other healthcare professionals, they also provide federal prosecutors the opportunity to argue that a provider’s good faith defense is limited after such an alert has been issued, i.e. that providers are on notice that such practices as suspect.

Stahl Gasiorowski Criminal Defense Attorneys have represented dozens of physicians, marketers, telehealth companies and pharmacists in federal healthcare fraud investigations. We proactively and aggressively protect our clients’ rights. To contact Mr. Stahl, call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rgs@sgdefenselaw.com.

In the past, federal agents and prosecutors have sought subpoenas and search warrants that authorize the seizure of every electronic device at the location to be searched – computers, servers, external hard drives and cell phones. This policy has resulted in an exponential growth in seized data to be reviewed and turned over in discovery. After several high profile cases exposed the Department of Justice’s failures in processing and timely disclosing seized data to the defense, the DOJ has told U.S. Attorney’s Offices around the country to collect less evidence.

DOJ officials disclosed this new emphasis in an interview with Bloomberg Law. In a program set to launch later this year in mandatory training for more than 6,000 federal prosecutors, DOJ will instruct them to be more selective in the evidence sought and seized. This controversial policy shift will emphasize a “smart collection” approach in DOJ’s annual discovery training.

As with most new policies, some veteran prosecutors are pushing back claiming that the new policy could result in missing valuable evidence, result in less than thorough investigations, miss exculpatory information and is generally not in the government’s best interests.

For its part, DOJ readily acknowledges that it is a constant struggle to fund and find the software and personnel needed to store and analyze the volume of electronic evidence seized. DOJ requested $27 million for U.S. Attorneys offices for the next fiscal year for “e-Litigation modernization”, including 52 new positions and technology upgrades. DOJ already has a $1.5 billion e-discovery vendor services contract awarded in 2020 that is set to expire in 2027.

Despite the massive amount of money, search platforms and personnel devoted to electronic discovery, there have been a plethora of cases that have revealed DOJ’s failure to timely analyze and turn over discovery to the defense. And when discovery is turned over, often times it is in a massive dump in an unusable format that the defense must then retain its own experts to load onto costly search platforms. By tailoring government searches of electronic devices, the government acknowledges that its past practice of grabbing every bit of data is impractical and unworkable. While the government claims that it is at a disadvantage to well-funded big law and corporations in reviewing large amounts of electronic data, the reality is that most individuals charged in federal fraud cases are the ones at a disadvantage. The vast majority of defendants cannot afford the costs of web-based search platforms and 100s or 1000s of hours it takes to search and review potentially the electronic data. Data that may be critical defense evidence that may go undiscovered.

Stahl Gasiorowski Criminal Defense Lawyers have successfully represented hundreds of individuals under complex federal and state investigations with terabytes of discovery. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rstahl@stahlesq.com.

In many types of criminal cases, the right expert can be invaluable. Whether it is a forensic accountant in a complex fraud or tax investigation; a medical or billing expert in a healthcare fraud investigation; a forensic psychiatrist for a sex abuse or child pornography case; a computer expert for a computer crimes matter or to download and organize a searchable database for millions of documents in discovery; or a drug or gang expert in a serious drug case, the proper expert retained early in the investigation can assist the client’s criminal defense attorney in their efforts to prevent the charges from being filed, or to assist in developing a defense to aid in plea negotiations or to prevail at trial.

Often the government employs or hires its own experts to analyze a wide variety of data, information or documents. These government “experts” may be recognized in their fields, or they may be opining on evidence in fields in which they are not truly qualified. It is critical in such cases, that the defense attorney have at his disposal the best possible expert in the relevant field of inquiry to conduct their own review and analysis of the evidence and to potentially refute the conclusion of the government expert.

In recent years, there have been notable cases that have demonstrated that government “experts” have either overreached or provided false reports and testimony. For instance, state drug labs around the country have discovered state laboratory technicians that have failed to conduct drug tests on tens of thousands of drug seizures and simply falsified their reports. Other so-called experts have opined on subjects that do not meet generally accepted scientific standards, including hair and fiber analysis, bite marks and lead analysis of bullets. Too often the testimony by these alleged experts have resulted in convictions based on false or unsound results.
Experts can be used to analyze the evidence and discover the weaknesses or fallacies in the government’s theory of the case. The ability to independently review and analyze varied and complex financial transactions, computer code, thousands of emails and attachments, billing records or scientific results can mean the difference between a conviction and acquittal. In addition, most fraud cases and potential sentences are driven by the loss amount. Experts can provide valuable analysis that reduces the loss amount and the potential sentencing ranges.

Aggressive, experienced defense attorneys use experts as early in the process as possible. There are certain procedures that must be followed to protect and preserve the attorney-client and work-product privileges. To do so, the law firm retains the expert to work under the firm’s supervision and direction. While the client is responsible for the fees and expenses, the expert communicates with the law firm rather than with the client so that the expert cannot be cross-examined by the government about any statements or information provided by the client.

Stahl Gasiorowski Criminal Defense Lawyers have extensive experience using experts in their representation of individuals charged with federal and state felonies. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rstahl@stahlesq.com.

Cybercrimes – hacking, phishing, ransomware and the like – are well-known to every user of the internet. We are bombarded weekly with emails and texts claiming that we need to update our passwords, personal profile, and the like. Now comes the rise of what has been called “romance scams”. The typical scheme starts with a fake dating profile on an online dating site. Fake name, picture, background, likes and what the alleged person is looking for in a mate is established. Once selected, the fraudster starts a series of on-line communications that lure the unsuspecting victim in with attention, romance and affection. The fraudster then sets out a story about why s/he needs money – lost their passport and credit cards while on a trip; a co-worker was injured and it was the fault of the scammer; needs money for a sick relative – always with the promise to return the money.

In 2021, it was reported that victims were scammed out of at least $547 million, an 80% increase over 2020. This figure is likely conservative since many victims of romance scams are too embarrassed to report them or the amounts are too small for law enforcement to actively investigate. Not unexpectedly, recently divorced and windowed women are frequent targets of romance scams.

Federal law enforcement has discovered that many of these types of scams are run out of Nigeria by organized groups, a well-known hotbed for cyber fraud and money laundering schemes. Many others, however, are simply con artists here in the United States looking for easy marks by preying on someone’s kindness, loneliness and vulnerabilities.

While older woman are common targets, the government reported that people between the ages of 18-29 are increasingly targets resulting in a tenfold increase from 2017 to 2021. Netflix documented one such scam in its documentary “The Tinder Swindler”. The film recounted the exploits of Shimon Hayut who held himself out as the son of a famous Russian-Israeli diamond scion. He lavished his victims with first class travel, jewelry and clothing using the proceeds from prior victims. His promotion of his lavish lifestyle on social media – private jets, yachts, expensive watches and clothes – was one way he recruited his victims. Once he lured a woman in, he then fabricated tales of being in danger and needing money for his safety.

These types of schemes are particularly heinous. They not only deprive the victims of often limited resources, they prey on their vulnerabilities, often leaving the victims psychologically scarred and feeling deeply violated. Victims are often too embarrassed to tell family, friend or law enforcement. Some are even left believing that the person who romanced them was genuine and something bad must have happened to him after they lose contact.

Recently, U.S. Attorney’s Offices, FBI and other federal agencies have been aggressively investigating and prosecuting these hideous schemes as often there are multiple victims totaling substantial losses.

Stahl Gasiorowski Criminal Defense Attorneys actively and aggressively protect clients’ rights. To contact Mr. Stahl, call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rgs@sgdefenselaw.com.

In response to a dramatic surge in car thefts across New Jersey, State Attorney General Matt Platkin announced today that he is reversing a policy that prevented police officers from pursuing stolen cars. In late 2021, Platkin effected a statewide policy that prohibited police from chasing a stolen car unless they suspected it had been used in the most serious of crimes, such as murder, vehicular homicide or kidnapping. Thus, the A.G.’s policy prohibited police from pursuing a car simply because it had been stolen.

After scores of stolen vehicles, and complaints from citizens, local government officials and police, Platkin relented to now permit police to chase a car they think has been stolen.

Last year, Platkin said he wanted to limit police chases because high-speed car chases are dangerous, and can put police officers and innocent drivers alike at risk. It was part of an overhaul led by Governor Murphy to reduce the use of force by police. However, with motor vehicle thefts up 127% from last January state officials recognized that the policy needed to be changed.

In addition, Platkin and Gov. Murphy announced that the state would use $10 million in American Rescue Plan funds to purchase automated license plate recognition technology. The funds will allow local police departments to purchase high-speed, automated camera systems that capture and store computer-readable images of license plates. These license-plate readers will be placed at “strategic locations throughout” towns and the N.J. State Police will also deploy cameras along major highways.

According to the Attorney General’s office, the most commonly stolen luxury vehicles are BMW X6, Land Rover Range Rover Sport, Audi Q5 and BMW X3.

The top vehicles stolen statewide in 2022 include Honda Accord, Jeep Grand Cherokee, Honda CR-V, BMW X5 and BMW 3-Series.

High speed chases are dangerous to the officers involved, as well as innocent drivers and pedestrians that may be injured when the stolen vehicle or the police crash. Police must use common sense, as well as policy guidelines, in their pursuits. More often than not, a stolen vehicle is just that – stolen – not a car being used to commit a serious felony. Many high end cars are stolen from wealthy suburbs because the owners negligently leave the keys in their car in their driveway or unlocked garage. Others are left running at convenience stores while their owners run in for a quick purchase. These types of thefts are crimes of opportunity and can be easily eliminated. Other car thefts involve use of force, specialized electronic equipment or fraudulent schemes that obtain access to vehicles that are much more difficult to combat.

Stahl Gasiorowski Criminal Defense Lawyers have extensive experience representing individuals charged with federal and state felonies. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rstahl@stahlesq.com.

The Department of Justice just announced charges against 21 individuals in a nationwide crackdown of COVID-19 related prosecutions that resulted in $150 million worth of fraud. The schemes were varied and involved medical doctors, medical labs, marketers and others in the healthcare field.

For instance, two owners of a lab in California allegedly billed more than $125 million in fraudulent claims. In Maryland and New York drive through test site operators are accused of using confidential patient information to bill for lengthy office visits that never occurred. In New Jersey, five individuals were accused of paying or receiving kickbacks for referring COVID tests to a particular lab. Even though the tests were medically necessary, and the lab only billed the allowable rate to the government program, the lab was accused of violating the anti-kickback statute that prohibits paying individuals or companies to refer tests.

The Maryland case charged a physician with submitting false claims to Medicare and private insurers. The defendant owned drive through COVID testing sites. Employees gathered patient information at the sites and later submitted false claims for complex in office visits for other healthcare procedures that never occurred.

In Florida, a registered nurse was charged with signing huge numbers of medically unnecessary doctor’s orders in exchange for sham telemedicine consulting fees. Another case in Florida charged individuals with fraudulent Medicare billing for medical equipment that was obtained by paying kickbacks to marketing companies that solicited patients for equipment they didn’t need.

In other schemes, defendants in California were charged with allegedly counterfeiting vaccine cards. Another case involved a hospital pharmacy director who obtained authentic Moderna dose lot numbers and used them to falsify vaccine ecards.

In New Jersey, one of the District’s first healthcare fraud trials just resulted in a guilty verdict against a medical sales representative of a diagnostic lab who paid kickbacks to a physician for referring tests to the lab. In an effort to disguise the kickbacks, the marketer placed the physician’s medical assistant on the lab’s payroll. In a related scheme, the marketer was paid for promoting medically unnecessary compound medicines that certain insurance plans covered. The defendant and others paid kickbacks to doctors to prescribe the unnecessary compounds without even examining the patients.

Other cases have charged individuals with fraudulently obtaining relief funds from the Coronavirus Aid, Relief and Economic Security Act. A 2020 bill that provided billion in emergency financial assistance.

These and scores of other cases highlight federal authorities continuing investigations and DOJ’s aggressive prosecution of a variety of healthcare fraud schemes. These schemes involve medically unnecessary compound medicines, genetic cancer tests, kickbacks on prescriptions for DME – durable medical equipment – such as braces, as well as COVID-19 tests.

Federal healthcare laws and regulations are complex. There are countless ways for doctors, pharmacists, lab owners and marketers to violate these laws. Stahl Gasiorowski Criminal Defense Lawyers have extensive experience representing individuals and corporations accused of healthcare fraud. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rgs@sgdefenselaw.com.

It’s 6 a.m. or 8 p.m., your doorbell rings and two people are standing outside holding up their badges and credentials. They say they are Special Agents with the FBI or IRS and would like to talk with you for just a few minutes about something important. They ask if they could come in to speak with you privately. Caught off-guard, and not wanting them to think that you have anything to hide, you invite them in (and, of course, you don’t want your neighbors to see them talking to you on your front steps). The agents are “friendly” and just have a few questions to get your input, your side of things, or to serve you with a grand jury subpoena. You decide to talk to them, only for a few minutes, in the comfort of your own home or office. At the end, they thank you for your time and hand you either a grand jury subpoena or a “target letter.”

After they leave, you start to wonder – what did I say? How much did I tell them? Am I in trouble, did I implicate myself or others? You start to look for an attorney. You can’t ask your family or friends who they hired last time the FBI or IRS visited them because you don’t know anyone who ever faced such a situation. So, you scour the internet to find an experienced criminal defense attorney, one with a lot of federal experience because it’s a federal investigation.

The next day you’re in the attorney’s office. After talking to the attorney you realize that what you thought was an innocuous 15 -30 minute chat with the FBI was actually an hour and a half where you told them some things, but not others. You discover that it is a federal crime to lie to the agents. You learn that it doesn’t matter that they didn’t read you your rights, like in the movies, because you weren’t “in custody.” When you tell the lawyer that you only spoke to them because you didn’t want the agents to think you were involved or guilty, the lawyer tells you that the agents already think that you’re involved, that’s why they were at your house to interview you in the first place. You then learn that there were two agents so that the interview was witnessed by two of them for credibility later on if you dispute what you said. You learn that a “target letter” is issued by an Assistant U.S. Attorney because she believes that you are involved in criminal activity and wants you to come in with your attorney to negotiate a plea of guilty. You realize that it was a mistake to say anything to the agents without first talking with an experienced white-collar criminal defense attorney.

So, what should you do in such a situation? The safest course would be to politely tell the agents that while you would like to talk with them, you need to contact your attorney and that he will get back to them. Ask them for their business cards so that you can give the information to your attorney. If they don’t have cards, write down their names, agency and contact information. Do not under any circumstances talk with them about the subject matter of their investigation. After they leave, contact an experienced criminal defense attorney to discuss your rights, potential exposure and your options.

If you did talk with the agents, experienced criminal defense counsel can help you get through the situation and protect your rights going forward. The task will be to mitigate any statements made and develop an overall strategy to succeed.

Stahl Gasiorowski Criminal Defense Lawyers have successfully represented hundreds of individuals under federal and state investigations. To contact the firm’s NJ office, call 908.301.9001 and to contact the firm’s NYC office, call 212.755.3300, or email Mr. Stahl at rstahl@stahlesq.com.

U.S. Attorney General Merrick Garland announced that the Department of Justice (DOJ) is planning a hiring spree to investigate and prosecute pandemic related fraud and traditional white collar crimes. President Biden’s budget seeks $3.5 million to hire an additional 120 prosecutors to focus on pandemic related fraud and $325 million for 900 additional FBI agents to investigate white collar crimes.

Speaking at the ABA’s annual white collar crime conference, Garland said that DOJ’s interest in white collar crimes is once again being prioritized. DOJ is placing renewed emphasis on serving victims of white collar crime with an approach similar to that in violent crimes. What this means is that DOJ will place a greater emphasis on victims’ rights and economic losses. There will be a renewed effort on criminally prosecuting responsible corporate officers, rather than merely accepting big-dollar corporate pleas or civil resolutions with large financial penalties.

This announcement comes on the heels of DOJ’s new hires for the Criminal Division’s Fraud Section late last year, as well as its renewed efforts in prosecuting environmental and antitrust matters. In addition to the new funds and hires, DOJ will use what the AG calls “force multipliers” to uncover fraud – partnerships with government agencies in the U.S. and abroad and new data analytics. Embedded in the Fraud Section are FBI data experts that model their assessments of payment anomalies and other activity patterns first developed in investigations of health care fraud.

A.G. Garland also announced the formation of KleptoCapture, its new Russian sanctions task force headed by former SDNY AUSA Andrew Adams. With more than a dozen prosecutors, the task force is designed to quickly and aggressively enforce sanctions here, and those coordinated with other countries, to punish the Kremlin and certain oligarchs for the invasion of Ukraine.

Stahl Gasiorowski Criminal Defense Attorneys actively and aggressively defend clients being investigated and prosecuted for white-collar fraud. We have successfully defended cases involving health care fraud, tax fraud, crypto currency, international money transfers and money laundering, import duties and taxes, and other types of sophisticated fraudulent schemes. To contact Mr. Stahl, call 908.301.9001 for the NJ office and 212.755.3300 for the NYC office, or email Mr. Stahl at rstahl@stahlesq.com.