by Structured Settlement Watchdog
Former structured settlement broker turned felon, Joseph E. Gargan. has been seeking a favorable decision for Compassionate Release due to various health related issues since he began serving his sentence in January 2021. Gargan has been housed at FMC Buttner for most of that time, the same place where Bernie Madoff and Ted Kaczynski, the Unabomber, were caged. Gargan seeks a 28 CFR 2255 hearing on the merits from Judge Rossie C.Alston of the United States District Court, Eastern District of Virginia Criminal Action 1:20-cr-110 (RCA).
Gargan, the former CEO of The Pension Company, was required to pay restitution in the New York case first. Michael K. Eidman, the attorney for a New York minor's family submitted a letter to Judge Alston in support of Gargan's request which stated that Gargan had made full repayment of more than $1,032,750.00 that Gargan had embezzled from the minor's medical malpractice settlement and had been earmarked for the minor's Supplemental Needs Trust. See January 10, 2022 victim lawyer letter to Judge in support of Gargan motion for compassionate release. Gargan still owes the Government millions, although Gargan disputes the amount and insists that the damages due the Government were miscalculated. He disputes the amount of restitution still due the Government.
On April 19, 2022, in a Second Supplemental Brief in support of his Motion to Vacate Under Section 2255, Gargan brought to the Court's attention, the April 7, 2022 5th Circuit decision in United States v Brian Alfaro (Case 20-51054), where the Court remanded and resentenced Mr. Alfaro due solely to the Court's erroneous assessment of the loss amount and resulted in a potential change in the Federal sentencing Guideline range. Gargan contends that the restitution calculated by the AUSA in the civil Division of the DOJ is inaccurate and excessive. He contends that the evidence clearly proves this fact and requires a 2255 Hearing.
28 U.S. Code § 2255 - Federal custody; remedies on motion attacking sentence
(a)A prisoner in custody under sentence of a court established by Act of Congress claiming the right to be released upon the ground that the sentence was imposed in violation of the Constitution or laws of the United States, or that the court was without jurisdiction to impose such sentence, or that the sentence was in excess of the maximum authorized by law, or is otherwise subject to collateral attack, may move the court which imposed the sentence to vacate, set aside or correct the sentence.
(b) Unless the motion and the files and records of the case conclusively show that the prisoner is entitled to no relief, the court shall cause notice thereof to be served upon the United States attorney, grant a prompt hearing thereon, determine the issues and make findings of fact and conclusions of law with respect thereto. If the court finds that the judgment was rendered without jurisdiction, or that the sentence imposed was not authorized by law or otherwise open to collateral attack, or that there has been such a denial or infringement of the constitutional rights of the prisoner as to render the judgment vulnerable to collateral attack, the court shall vacate and set the judgment aside and shall discharge the prisoner or resentence him or grant a new trial or correct the sentence as may appear appropriate.
Gargan contends that the Government never should have used the replacement cost of annuities to calculate the loss amount since he alleges, that amount does not accurately reflect the true amount of the purloined funds from The Pension Company premium trust account. Due to the fact that structured settlement annuity rates can fluctuate daily and he contends there was no need for the Government to buy the replacement annuities when they did; at the lowest rate of return in the history of the structured settlement industry. He therefore contends that the restitution due and payable to the US Government (i.e. the tax payers) should be the amount of the purloined funds, less the payments Gargan made into the US Government Reversionary Medical Trust.
Gargan further contends that even if the Court determined that the loss amount should include the replacement annuities the Government inflated the annuity purchase price by over $750,000 by duplicating a guaranty on $700,000 in payments that had already been made by Gargan and unnecessarily included over $250,000 in structured settlement brokerage commissions. Gargan contends that if the Government properly priced the 46-year guarantee instead of a 50-year guarantee, the restitution would be reduced by $700,000. Gargan contends that the AUSA who facilitated the annuity purchase retired from the DOJ and was immediately hired by the largest structured settlement firm in the U.S, which he alleges received the benefit of billions in US Government funds over the last 40 years, which he alleges were received without government contract or proper DOJ oversight.
Gargan detracts from his credibility, in my opinion, by going on to make salacious allegations about how DOJ business has been assigned. If the convicted admitted purloiner is to be believed, one can't help but wondering if Gargan has ever been assigned business based on his allegations of "favoritism, bribes and sexual favors" [with a garnish of "sour grapes" and a twist of lemon].
Let's not forget the commissions that he owed former Pension Company brokers Jim Brady, John Willcox and Mike Herald, at the time of his conviction and again, he still owes the Government (i.e. the taxpayers) millions, even if he succeeds in getting a reduction,
Comments and Trackback Policy