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September 10, 2026
Sentence Set by Extent of Crime

Crime Requires 121-151 Months of Imprisonment

Post 5486

Posted on September 9, 2026 by Barry Zalma

Mr. Baiyewu Is Liable For The Loss Resulting From Acts Directly Attributable To Him And For The Loss Resulting From The Reasonably Foreseeable Acts Of Others Taken In Furtherance of the Criminal Activity

In United States Of America v. Oluwasegun Baiyewu, CRIMINAL No. 21-395 (RAM), United States District Court, D. Puerto Rico (August 26, 2026) the court dealt with a case after on October 20, 2021, a grand jury in the District of Puerto Rico returned a single-count Indictment charging Mr. Baiyewu with conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). About a year and a half later, on March 31, 2023, a grand jury returned a single-count Superseding Indictment charging Mr. Baiyewu and four co-defendants with conspiracy to commit money laundering, in violation of 18 U.S.C.

CONVICTION

Baiyewu was convicted by a jury of conspiracy to commit money laundering under 18 U.S.C. § 1956(h). The charged conspiracy, operating from May 2020 through October 2021, involved proceeds from business-email-compromise schemes, romance scams, and unemployment-insurance fraud.

Funds were routed through vehicle-auction accounts.

LAW

At sentencing, a court may rely on a Pre Sentence Report (PSR) when its factual assertions bear sufficient indicia of reliability, but disputed allegations must have an adequate evidentiary basis. Under Federal Rule of Criminal Procedure 32(i)(3)(B), the court need not resolve a dispute that will not affect sentencing. U.S.S.G. § 2S1.1(a)(2) applies when the defendant did not commit the underlying offense or its offense level cannot practicably be determined.

A four-level increase under § 2S1.1(b)(2)(C) applies when the defendant was in the business of laundering funds, assessed under the totality of the circumstances. Section 3B1.1(a) provides a four-level organizer-or-leader enhancement where the activity involved five or more participants or was otherwise extensive and the defendant organized or led at least one participant.

Loss is proved by a preponderance of the evidence and may be reasonably estimated, but the estimate must rest on reliable evidence; when criminal and legitimate funds are commingled and the criminal portion cannot practicably be determined, the total commingled amount may be used.

ANALYSIS

The court partially sustained factual objections where the PSR overstated or imprecisely described trial testimony. It rejected other factual objections as accurate or immaterial.

The evidence showed sustained laundering activity: Baiyewu sourced funds through intermediaries, directed deposits and auction payments, coordinated transfers of Nigerian naira, used multiple sources, and operated over an extended period. That record supported the “business of laundering funds” enhancement. On loss, however, the government’s proposed $4,053,739.95 figure included deposits outside the conspiracy period and was insufficiently tied to reliable proof. The court instead used $3,140,000, the total deposits during the conspiracy into the three relevant accounts, because the legitimate and criminal funds were commingled and the criminal portion could not practicably be isolated.

DISCUSSION

The court demanded transcript-level accuracy for disputed PSR statements and a dependable evidentiary basis for the amount calculation, while permitting use of the full commingled amount once a narrower criminal-funds figure could not be determined without undue complication. Restitution remained unresolved because the court left the record open for 90 days after sentencing.

A PSR generally bears sufficient indicia of reliability to permit the district court to rely on it at sentencing. Where an objection has been raised, the mere inclusion in the PSR of factual allegations does not convert facts lacking an adequate evidentiary basis with sufficient indicia of reliability into facts a district court may rely upon at sentencing.

Guideline § 2Sl.l(a)(2) applies where the defendant did not commit the underlying offense, or where the defendant did commit the underlying offense, but the offense level for the underlying offense is impossible or impracticable to determine.

CONCLUSION

In this case, Mr. Baiyewu is liable for the loss resulting from acts directly attributable to him and for the loss resulting from the reasonably foreseeable acts of others taken in furtherance of the jointly undertaken criminal activity, but the government bears the burden of proving a victim’s losses by a preponderance.

Baiyewu’s total offense level was 32, with criminal history category I, producing an advisory imprisonment range of 121 to 151 months and a fine range of $35,000 to $350,000. The scope of Mr. Baiyewu’s criminal activity and the fact that he led or organized one or more of the five or more individuals involved in his criminal activity, he qualifies as a leader or organizer.

Here, the evidence does not provide a sufficient basis for attributing the Government’s proposed amount of $4,053,739.95 to Defendant.

At trial, Government exhibits showed Mr. Baiyewu personally deposited multiple funds from the criminal activity. The Court found, based on the evidence before it, that the appropriate estimate of the value of laundered funds was $3,140,000. Defendant’s offense level will be increased by 16 levels instead of the 18 levels provided by the Second Amended PSR.

Mr. Baiyewu has a total offense level of 32 with a criminal history category I and an applicable guideline sentencing range of 121-151 months of imprisonment and a fine range of $35,000 to $350,000.

ZALMA OPINION

Federal courts are required to follow guideline set by statute. The court followed the guidelines as fairly and effective as possible. Baiyewu will serve more than 12 years, an appropriate sentence following the guidelines.

(c) 2026 Barry Zalma & ClaimSchool, Inc.

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September 18, 2026
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Posted on September 18, 2026 by Barry Zalma

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In Michele A. Over, and The Estate Of Paul R. Over v. State Farm Mutual Automobile Insurance Company, and State Farm Fire And Casualty Company, Civil Action No. 23-cv-02243-PAB-STV, United States District Court, D. Colorado (September 14, 2026) Michele and Paul Over sued State Farm Fire and State Farm Auto over hail-damage and stolen-vehicle claims.

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The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...

00:03:10
September 17, 2026
Convicted on 29 Tax-Refund-Fraud Counts

150 Months in Prison for Tax Fraud
Post 4846

Posted on September 17, 2026 by Barry Zalma

See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.

FACTS

In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS

Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.

The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...

00:05:23
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Court Enforces Fifth Amendment & Refuses to Compel Answers

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Post 5489

Posted on September 14, 2026 by Barry Zalma

Fraudster Refuses to Answer Questions About His Alleged Fraud

See the full video at https://lnkd.in/gvicAMDr and at https://lnkd.in/gvicAMDr

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Zalma’s Insurance Fraud Letter – October 1, 2026

Another Anniversary for Barry Zalma, Inc

Posted on October 1, 2026 by Barry Zalma
From October 1, 1979 – 2026

Post 4854

Read the full issue of ZIFL at https://zalma.com/blog/wp-content/uploads/2026/09/ZIFL-10-01-2026.pdf Forty seven years ago today I left the world of the employed and became an entrepreneur by opening my own law firm. The law practice was incorporated shortly thereafter as Barry Zalma, Inc.

When I opened for business on October 1, 1979, I had no clients and no certainty that I would have any in the future. I had borrowed money from the bank to carry me through the first six months and was concerned about my ability to pay the loan with my third child about to be born.

Much to my surprise and pleasure, on October 1, 1979, at 8:10 a.m., the best claims handler in the London market, Alan Warboys, called from London and provided me with my first case as an independent lawyer to represent Certain Underwriters at Lloyd’s, London. He, and the Lloyd’s Underwriters he represented, showed faith in me as a lawyer and insurance expert. Alan is now, although ...

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Suing for Services Provided, and Paid for, is Fraud

Defendants Successfully Moved for Summary Judgment

Post 4854

Posted on September 30, 2026 by Barry Zalma

In Jeffrey Wayne Phillips v. Creative Website Studios, et al., No. 5:23-CV-568-BO-BM, United States District Court, E.D. North Carolina, Western Division (September 28, 2026) the Court needed to rule on the order and memorandum and recommendation (“M&R”) of the Magistrate.

Jeffrey Wayne Phillips had contracted with Creative Website Studios and SR Telecommunications for website and hosting services. He alleged that defendants repeatedly billed him for hosting periods he had already paid for and later took down his website. Phillips claimed the outage prevented him from bidding on U.S. government security contracts and sought roughly $300 million in consequential damages.
LAW

Under North Carolina law, fraud requires a false material representation or concealment, intent and effect of deception, resulting damage, and reasonable reliance. Obtaining property by false pretenses similarly requires an ...

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September 29, 2026
Court Partially Limits Evidence to Present at Trial

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Post 4853

Posted on September 29, 2026 by Barry Zalma

Court Refuses to Grant Most Motions in Limine

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