Dr. M Blatstein's Blog, Preparation, Sentence Mitigation, White-Collar

TOPICS

AI is the DOJ’s Tool of Choice. They don’t need sleep and are constantly monitoring and data-mining.

Paycheck Protection Program (PPP) (55)

• Reis and Hockridge to 10 years in prison

Cryptocurrency (59)

• Travis Ford, investment CEO, founder, and head trader, to 60 months in prison

Telemarketing Scheme from a Call Center in Costa Rica. (61)

• Roger Roger to 188 months

THE DOJ WILL BE EXPANDING ON THEIR WINS FROM 2025

• Fraud Enforcement Isn’t Slowing Down — It’s Gearing Up

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AI is the DOJ’s Tool of Choice. They don’t need sleep and are constantly monitoring and data-mining.

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Their Multi-agent AI is not a future concept—it is an operational shift that businesses must prepare for now. Rather than deploying a single AI system, organizations are moving toward coordinated networks of specialized agents that can independently act, collaborate, and adapt in real time. Whether to go for a trial or a plea, this is a strategic decision between you and your attorney.

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WHAT YOU CAN DO.

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Preparation

As soon as you hear that the FBI is asking questions, their case against you is mostly complete. First, you need legal counsel with experience with cases like yours in the Federal Court. Second, if prison time is unavoidable, preparing for your interview (the Presentence Interview) is crucial. This is not just a form you can fill out on the spot, which is why your PSR is called the “Inmates’ Bible.”

Will you have the choice between a Minimum FPC (Free Standing Camp) vs a Minimum Satellite Camp (attached to a higher security facility)? There are differences.

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Advice from Federal Judges – When To Start Preparing For Sentencing

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ACKNOWLEDGE THE IMPACT OF YOUR INDICTMENT.

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Judges know that crimes don’t happen in a vacuum. What were your reasons? Help them understand who you are. If you don’t provide your Autobiographical Narrative or Backstory, your indictment and charges will define who you are – to the court – through the length of your sentence.

 

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WHAT THE DOJ IS DOING.

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Paycheck Protection Program (PPP) (Page 55, below)

• Hockridge and her husband, Nathan Reis, co-founded Blueacorn in April 2020 to help small businesses get PPP loans, but they created fake documents to secure larger loans. They charged borrowers illegal kickbacks based on a percentage of the funds received. In August 2025, Reis pleaded guilty to conspiracy to commit wire fraud. A federal court sentenced both to 10 years in prison and ordered them to pay $66 million and $63 million in restitution, respectively.

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Cryptocurrency (Page 59, below)

• The CEO of an Oklahoma cryptocurrency investment firm has been sentenced to 60 months in prison for a $9.4 million investment fraud that harmed about 2,800 investors. He must also forfeit more than $1 million and pay more than $170,000 in restitution.

 

Telemarketing Scheme from a Call Center in Costa Rica. (Page 61, below)

• A federal court sentenced Roger to 188 months in prison for carrying out a years-long telemarketing scheme that defrauded victims in the United States from a call center in Costa Rica. Roger was also ordered to pay more than $3.3 million in restitution and to forfeit more than $4.2 million.

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THE DOJ WILL BE EXPANDING ON THEIR WINS FROM 2025

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Fraud Enforcement Isn’t Slowing Down — It’s Gearing Up

• Expect aggressive — and possibly expanded — enforcement targeting fraud tied to federal programs. However, the new fraud division is ultimately structured, the message is clear: misuse of federal funds remains a top priority. The government will continue to rely on powerful tools like the False Claims Act to pursue companies, nonprofits, and other funding recipients.
• Politics shape priorities. Early signals suggest the division could operate out of the White House, with focus areas that may shift based on policy agendas. That adds uncertainty to how cases are selected and pursued.
• Compliance is your first line of defense. Organizations receiving federal funds — especially in highly regulated sectors — should reassess internal controls, billing practices, eligibility certifications, and representations made to the government.

A HEALTHCARE RISK MANAGEMENT, IN-HOUSE POLICY IS YOUR BEST DEFENSE

• Timing matters. As DOJ’s structure evolves, early engagement with counsel can help assess exposure, manage parallel civil and criminal risk, and respond strategically before issues escalate.
• Bottom line: If you receive federal dollars, expect scrutiny — and prepare accordingly.