Pending Criminal Division Cases

United States v. Mitchell J. Stein
Court Docket Number: 9:11-cr-80205-KAM

Court Assigned: This case is assigned to Judge Kenneth A. Marra, U.S. District Court Judge for the Southern District of Florida, Paul G. Rogers Federal Building, 701 Clematis Street, Courtroom 4, West Palm Beach, Florida 33401.


Latest Update: January 18, 2017

INDICTMENT: On December 13, 2011, Mitchell J. Stein, an attorney for Signalife, Inc. (Signalife), was indicted on charges of conspiracy to commit mail and wire fraud, wire fraud, securities fraud, money laundering, and conspiracy to obstruct justice for engaging in a multimillion-dollar market manipulation scheme related to Signalife. Signalife, a South Carolina health care device company was later known as Heart Tronics, Inc., purportedly sold electronic heart monitoring devices. The company's stock was traded under the symbols SGN and HRTT

U.S. v. Mitchell J. Stein, Criminal Indictment, Unsealed December 13, 2011

CONVICTION: On May 20, 2013, after a two week jury trial, a jury convicted Stein, on all charges in the indictment

Press Release - Sentencing Outcome, December 5, 2014

SENTENCE: A sentencing for Stein occurred on December 4, 2014 and December 5, 2014. The court sentenced Stein to 204 months of incarceration, followed by 2 years of supervised release, and ordered him to forfeit $5,378,581.61. At this hearing, the Court cancelled the restitution hearing that had been scheduled for February 27, 2015;

RESTITUTION: On April 8, 2015, the Court ordered Stein to pay restitution in the amount of $13,186,025.85 to the 2,415 victims that have been identified by the U.S. Probation Office. In view of Steins present indigence, the Court ordered Stein to pay a minimal amount per month toward satisfaction of the restitution amount, specifically, 50% of his prison wages (if any) or $25 per quarter while he is incarcerated, and 10% of his monthly gross earnings after he is released. Those monthly payment amounts may be modified at a subsequent time based on any changes in Stein's financial circumstances.

It is important for you to know that just because the Court ordered the defendant to make restitution in this case does not mean that the defendant is financially capable of making restitution at this time. In the event that sufficient restitution payments are received from the defendant, the funds will be distributed by the Clerk of the United States District Court for the Southern District of Florida.

APPEAL: Stein appealed his convictions and sentencing, and the U.S. Court of Appeals for the Eleventh Circuit heard oral argument on July 12, 2016 at 9:00 am in the 12th Floor Courtroom, James Lawrence King Federal Building, 99 N.E. 4th Street, Miami, Florida 33132.

UPDATE: On January 18, 2017, the Eleventh Circuit affirmed the convictions of Stein on one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, three counts of wire fraud, three counts of securities fraud, three counts of money laundering, and one count of conspiracy to obstruct justice. However, the court vacated Stein’s 204-month sentence and $13 million restitution order and remanded for resentencing, finding that the district court erred in calculating actual loss.

The district court will re-sentence Stein at a date to be determined.

Related Cases: In a related case in the Central District of California, United States v. Ajay K. Anand, a former investor in and consultant for Signalife, was sentenced to one year of probation. Anand pleaded guilty to one count of obstruction of proceedings before the Securities and Exchange Commission (SEC) stemming from his making false and misleading statements about his knowledge of and involvement in certain activities of Signalife. Also, in another related case pending in the District of Columbia, United States v. Martin B. Carter, Carter, the former Chief Technology Officer of Heart Tronics, Inc., was sentenced to time served and 36 months of supervised release. Carter pleaded guilty on October 5, 2011 for his role in the fraudulent scheme.

The information on this webpage will be updated as new developments arise in the case. If you have any questions, please contact the Victim Assistance Unit by calling toll-free at (888) 549-3945 or by emailing us at victimassistance.fraud@usdoj.gov.


Presumption of Innocence: It is important to keep in mind that defendants are presumed innocent until proven guilty and that presumption requires both the court and our office to take certain steps to ensure that justice is served.

Crime Victims’ Rights Act and Right to Retain Counsel: The Crime Victims’ Rights Act (18 U.S.C. § 3771) applies only to victims of the counts charged in federal court, and thus individuals may not be able to exercise all of these rights if the crime of which the individual is a victim was not charged. Section 377I(c)(2) of this Act requires that we advise you that you have the right to retain counsel. Although the statute specifically sets forth your right to seek advice of an attorney with regard to your rights under the statute, there is no requirement that you retain counsel. The Government may not recommend any specific counsel, nor can the Government (or the Court) pay for counsel to represent you. Government attorneys represent the United States.

If you elect to obtain counsel to represent your interests, please have your attorney notify this office in writing at: U.S. Department of Justice, Criminal Division, Fraud Section, 10th & Constitution Avenue, NW, Bond Building, Room 4416, Washington, DC 20530, Attention: Pamela Washington; (202) 514-3708 (fax). If you elect not to retain counsel to represent your interests, you do not need to do anything.

Plea Agreements: Please be aware that many criminal cases are resolved by plea agreement between the Department of Justice and the defendant. You should also know that it is not unusual for a defendant to seek to negotiate a plea agreement shortly before trial is scheduled to begin. Plea agreements can be made at any time and as late as the morning of trial, leaving little or no opportunity to provide notice to you of the date and time of the plea hearing. If the court schedules a plea hearing in this case, we will use our best efforts to notify you of available information as soon as practicable. If you want to inform the prosecutor of your views regarding potential plea agreements, or any other aspect of the case, please contact the prosecutor assigned to this case or call the Victim Assistance Line toll-free at (888) 549-3945 or email us at victimassistance.fraud@usdoj.gov.

 

Updated March 30, 2017