Facing a Federal Investigation? Trial vs. Plea Deal: Insights from Ron Chapman
Release Date: 05/23/2024
Was It a Mistake or a Bad Choice?
White Collar Advice
I finished Sam Harris's Free Will last night, 1 hour and 14 minutes on Audible, and it made me look again at how I went from USC and Bear Stearns to lying to FBI agent Paul Bertrand. Harris argues we don't choose our thoughts, our genetics, our parents, or our early experiences. That idea is dangerous in front of a judge. If your narrative suggests it wasn't your fault, the court and your victims will hear it that way. What I took from the book is sequence: a financial problem, the concealment, the concealment working, and each next step getting easier. Michael Santos once asked me whether it...
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Isn't What You Do Manipulation? Question 11
White Collar Advice
A journalist keeps hitting me with one question: isn't what you do manipulation? So on question 11, I stop and read her the definition: to control or influence cleverly, unfairly, or unscrupulously. Then I walk through it. Sentencing advocacy is influence, yes, but so is the government's case, the defense attorney's argument, and sometimes a victim impact statement (I've seen people claim to be victims who weren't, including in my own case). Character reference letters can be used to manipulate too. But a defendant cannot shorten a sentence by manipulating a judge, because judges know the...
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Going to Prison Does Not Qualify You to Give Advice
White Collar Advice
A journalist writing about white collar crime sent me about 50 questions before our call. We cut it to 25, and I answered the first three here. Who I am and why anyone should listen to me: going to prison does not qualify you to give advice, and neither does failing. What matters is what you did with the experience and whether you built a record someone can look at. How I went from USC and Bear Stearns to federal prison: not one decision, but pressure, opportunity, and rationalization, convincing myself I was the good guy while I took commissions I was not entitled to. And whether I deserved...
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Why I Told This Lawyer Not to Ask for Probation
White Collar Advice
I got a call from someone new to our community, asking me to speak with his lawyer, a guy with more MVP awards than Michael Jordan, Kobe Bryant, and Magic Johnson combined. Two things stood out. The defendant didn't know his own guidelines were more than seven years, even after signing a plea agreement with points and restitution; how do you sign that and not know your number? And of course, he didn't want to go to prison. We got into what the government wants versus what the defense should ask for, and the lawyer told me, I'll do whatever you want me to do. I told him if the government wants...
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USC vs North Carolina and the Ghost of 1995
White Collar Advice
I look back on playing baseball at USC, where making the travel roster to Stanford felt like a big deal. I remember grounding out weakly against Cal State Fullerton reliever Mark Kotsay, who went on to a 17 year career in the majors, and the years I spent punishing myself over that at bat, a regret that followed me into federal prison. Today USC plays North Carolina for a shot at returning to the College World Series for the first time since 2001; back in 1995, my own USC team lost the national championship game to Cal State Fullerton. I tell this year's team to embrace it, win or lose,...
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Her Father's Money Came With Two Conditions
White Collar Advice
On my way back from Santa Barbara, I stopped near Ojai and met with a woman whose husband had just surrendered to federal prison for ten years. I write about this meeting in my new book, After the Fall, chapter 14. She knew he was under investigation but not how severe; he kept her in the dark, and she expected two or three years, so everyone was stunned when they heard a decade. Every time he calls from prison he tells her he's sorry, but that doesn't help her manage the kids, the bills, the fallout, and the shame. She finally reached out to her father for money. He said yes, but not as a...
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Just Get Him Home, She Said For Years
White Collar Advice
Every time we spoke, she'd say just get him home from federal prison. Before he went in, her husband blamed the court, the lawyers, the judge, and the co-defendant who cooperated against him. In prison he complained about his bunkie, the food, the commissary, his job, and asked why he was in a camp with no fences when he owed restitution. After he came home he complained about his probation officer, the restitution amount, how she was parenting their kids, and the dinner she cooked. About nine months after his release, she quietly told him: my life was much easier when you were in prison.
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He Called Me Before the FBI Did. He Still Got 6 Years
White Collar Advice
Nearly three years ago I spoke with a man who told me he was embezzling money. He was not the target of an investigation. I told him to stop the bleeding and not make it worse, and I referred him to five lawyers. He didn't call one. He had convinced himself, the way I once did, that another wire and another quarter would fix it and no one would know. He didn't fix it. The losses doubled. More victims, an indictment, a guilty plea, a conviction, and more than six years in federal prison. When we spoke again, he told me he wished he had taken my advice three years ago.
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Ippei Blamed Shohei in His Letter to the Judge
White Collar Advice
Someone new to our community asked how Ippei got 57 months while his co-defendant, Matthew Boyer, got a year and a day. I told him it's not the right comparison. Ippei stole $16 or $17 million, and even if Shohei is the greatest athlete in the world and a billionaire, he's still a victim, and the case did real damage to his brand. But look at how the two men responded. Ippei blamed Shohei in his letter to Judge Holcomb; I read that letter and made a long YouTube video about it. Matthew treated it as an evidence challenge instead of a legal one. He built a narrative about what he would do going...
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The SEC Didn't Get Through to Me. Prison Did.
White Collar Advice
When I went to federal prison I got the severity of my conduct. Standing for count, the 2 a.m. fire drills, visiting with crying parents. You realize maybe you can do better. When I settled with the Securities and Exchange Commission, really a toothless agency, I didn't get it. I had to go inside. I think that's the case for a lot of people serving time for very small frauds, $10,000 to $50,000 in PPP fraud, and for the many who go to prison for obstruction with no financial loss at all. If you reward bad behavior, if you go to prison and get clemency you didn't earn, you come home and keep...
info_outlineI connected with Ron Chapman through LinkedIn, where we often commented on each other's posts about mitigation. A few weeks ago, after I posted a video describing why some white-collar defense attorneys were averse to working with consultants, Ron commented.
"Justin, the issue is that in your industry there are a lot of vultures. Big promises of RDAP admission, programs, mitigation success. Most are working off of false or outdated knowledge of BOP policy. In addition, any field that intersects law will be highly skeptical to lawyers who've worked for decades perfecting their craft. You seem to be different, and I see value in what you offer. My only remaining concern is that others will continue to mimic you with a cheaper and a less honest service. We need to be on guard for these types because they cause real damage to vulnerable people during vulnerable times. It's all about helping people facing Government scrutiny, and as long as we're rowing in that direction, I'm happy."
Based on that comment, I asked Ron if he would join me for an interview. He said yes!
As Ron expressed in our video, his career as a criminal defense started in the Marine Corps, where he initially served as a prosecutor. He found more satisfaction in "ripping the wires out" of the government's case than in building it, which led him to switch to defense work. Now, he primarily represents physicians and healthcare entities facing federal investigations related to healthcare fraud and opiate prescribing cases.
One of the main topics we discussed was defendants' vulnerability. As we often do, Ron highlighted the dangers of misleading marketing and unethical practitioners who prey on the desperate. He stressed the importance of choosing lawyers carefully and being wary of those who promise unrealistic outcomes. What do I say in every video? WE CANNOT CHANGE THE PAST OR GUARANTEE AN OUTCOME.
Contrary to some defense attorneys who suggest waiting, Ron advocates for immediate action when a target letter is received, or any indication of an investigation arises. This involves engaging compliance professionals, conducting self-audits, and preparing for a thorough defense. The Department of Justice is always working, and so should the defendant.
Ron noted that a successful defense requires an understanding of the client's personality and actions. This knowledge is crucial, especially in trial settings where the attorney must effectively convey the defendant's story to the jury.
Our conversation then moved to the difficult decisions defendants face, particularly between going to trial and accepting a plea deal. Ron shared a story about a physician, Dr. Thomas Sachy (link below), who initially pleaded guilty under pressure but successfully withdrew his plea and won his case at trial. This story illustrates the importance of fully understanding the implications of a plea agreement.
We also discussed the issue of overcharging. Ron expressed concerns about prosecutors who stack multiple charges to compel defendants to plead guilty, often involving family members to increase pressure. This practice can lead to unjust outcomes, and Ron stressed the need for a more balanced approach to charging decisions.
Despite being based in Michigan, Ron's focus on healthcare law allows him to represent clients across the country. His national practice underscores the importance of specialized knowledge in navigating complex regulatory environments like healthcare.
Finally, we touched on the sentencing process. Ron emphasized the importance of defendants understanding the sentencing guidelines and the potential consequences of plea agreements. He encouraged defendants to become vested in their cases and actively engage with their attorneys to ensure they understand each step in the process.
Ron's insights into prosecutors' mindsets were insightful. He described how motivations can vary widely among prosecutors, from those driven by a sense of justice to others possibly influenced by career ambitions or bureaucratic inertia. Understanding these motivations can help defendants and their lawyers better anticipate prosecutorial strategies and prepare accordingly. I am grateful Ron took the time to join us and offer his insights. If you seek guidance in a healthcare case, Ron is someone you should consider calling.
Thank you, Justin Paperny
P.S. To learn more about Ron, his book and some of his outcomes, click the links below:
Book: https://ronaldwchapman.com/book
Company Website: https://www.ccghealthcare.com
News Media Appearances: https://www.youtube.com/channel/UCUF4Qi2sAp3kRFG6_f_taDA
Dr. Sachy Case: https://wgxa.tv/news/local/jones-county-doctor-accused-of-running-pill-mill-pleads-guilty-in-federal-court