We post news and comment on federal criminal justice issues, focused primarily on trial and post-conviction matters, legislative initiatives, and sentencing issues.

DISTRICT COURT SAYS NOT ALL FELONIES MAKE YOU A FELON-IN-POSSESSION

One of the most popular offenses charged by U.S. Attorneys is 18 USC 922(g)(1), the felon-in-possession statute. The section prohibits people who have been convicted in any court of a crime punishable by imprisonment for a term exceeding one year from possessing firearms or ammunition that have traveled in interstate commerce.

There’s a twist, however (isn’t there always?) Under 18 USC 921(20), a “crime punishable by imprisonment for a term exceeding one year” does not include any federal or state offenses “pertaining to antitrust violations, unfair trade practices, or other similar offenses relating to the regulation of business practices…”

Greg Reyes, a corporate executive who did 18 months in 2010 for fraudulent backdating of corporate stock options, has sued the Dept. of Justice, arguing that his securities law convictions were “similar offenses relating to the regulation of business practices,” and thus he was not prohibited from buying a handgun.

The government responded that “other similar offenses relating to the regulation of business practices…” were only those relating to antitrust or unfair trade practices. The district court, however, held a week ago that a similar offense is any other offense “if an examination of either its primary purpose or the elements of the violation reveals that the offense statute is designed primarily to address economic harm to consumers or competition.”

Under this standard, none of Greg’s prior convictions for securities fraud, falsifying corporate books and records, and making false statements to accountants required the government to prove an effect on competition or consumers. Nevertheless, the court ruled, each offense was clearly enacted for the purpose of protecting consumers.

The district court concluded that Greg’s felony convictions did not prevent him from possessing guns or ammo. The court did not have to reach Greg’s secondary issue, that the statute violated equal protection by artificially parsing the convictions which would or would not prevent possession of firearms.

The court  denied a motion by DOJ to dismiss Greg’s lawsuit and set deadline this week to decide whether final relief should be granted in favor of the former executive.

Reyes v. Sessions, Case No. 17-1643 (D.D.C. Sept. 28, 2018)

Guns.com, Convicted securities fraud exec may get gun rights back (Oct. 3, 2018)

– Thomas L. Root