Fraud Punishment Defense Case in Washington, D.C.

The complainant asserted that the defendants knowingly solicited approximately USD 8 million, exceeding the D.C. High value property threshold, thereby triggering potential felony Fraud review. 

The complainant also alleged that the defendants never intended to repay principal or return projected interest.

Complicating matters, one defendant had a prior conviction in another state for a financial offense, giving investigators reason to scrutinize the case with heightened suspicion.

Under D.C. Code § 22-3221, penalties for Fraud increase with the amount involved:

• Property value USD 1,000 or more → Felony Fraud, up to 10 years imprisonment and fines.
• Property value greater than USD 2,500 may support additional enhancements at prosecutorial discretion.

Because alleged losses exceeded USD 8 million, the defendants faced potential high level felony exposure if intent to defraud were proven.

We gathered and submitted documentation demonstrating that each business venture was real and actively developed:

• Signed contracts and vendor agreements for the wellness business acquisition.
• Financial records confirming vehicle secured lending transactions.
• Communications showing an associated business partner (“C”) directly managing the transactions until his unexpected passing.

These records contradicted the claim that the businesses were fabricated to commit Fraud.

Bank records substantiated that nearly all investment funds were applied toward operational costs, acquisition expenses, and payroll not personal enrichment.

Additionally, over USD 4.5 million in principal and interest payments were made to the complainant across a two year period behavior inconsistent with fraudulent schemes.

Following the death of partner C, the complainant executed a lien on C’s real property and recovered an additional USD 900,000 through liquidation.

These recoveries significantly reduced the complainant’s actual loss assessment, weakening the basis for a Fraud allegation.

An unrelated investor who had jointly engaged in certain wellness-business transactions with partner C confirmed that:

• The venture operated legitimately.
• Funds were used for business-related purposes.
• No indication existed that the defendants intended to deceive any investor.

This neutral testimony supported our position that no deliberate Fraud occurred.

We provided evidence demonstrating:

• Business operations generated legitimate revenue.
• Substantial repayments were made before partner C’s unexpected death.
• Losses arose from business interruption, not deceit.
• Recovery through collateral liquidation mitigated damages.

The Metropolitan Police Department ultimately concluded that fraudulent intent could not be established, resulting in a “No Further Action / Case Closed” outcome.

Our team delivered:

• Immediate strategic assessment
• Representation during investigative interviews
• Submission of comprehensive business and financial records
• Witness affidavits confirming legitimate operations

These efforts prevented escalation to the Office of the Attorney General or U.S. Attorney’s Office.

Large-scale financial disputes in D.C. Can quickly escalate into Fraud investigations, especially when misunderstandings about investment risk lead to allegations of deception. 

Our firm has extensive experience defending high value financial cases and navigating D.C.’s investigative procedures.

If you or your business is facing allegations of Fraud, contact SJKP to discuss immediate defense strategies and protect your rights.