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Chronological record of the federal criminal case and the related FTC civil matter.

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2012

March — Case was opened and investigations started.

2014

Through the year — Federal investigation of the enterprise develops.

2015

Mid-year — Indictment filed. Multiple defendants named. All defendants secure separate counsel and reaffirm a joint defense agreement.

Late in the year — Court holds a hearing on the “advice of counsel” defense. Judge rules verbally that the defense may be used if prior reliance is established.

December — Original trial date; case is rescheduled to March 2016.

2016

February 17 — A co-defendant secretly enters into a cooperation agreement with the government and provides prosecutors with defense case-preparation materials. He continues to participate in joint defense meetings while cooperating.

April 20 — Cooperation is revealed at a change-of-plea hearing.

August 3 — Defense files a motion to dismiss based on invasion of the attorney-client privilege; the defense establishes that the government had received the defense materials.

October–November — Court conducts hearings on the misconduct. Judge finds misconduct was extensive, excludes the cooperating co-defendant from trial, but denies the motion to dismiss. Trial rescheduled to May 2017.

2017

April — Government rejects the defense request to remove the prosecution team. Judge denies the defense motion to reconsider.

June 19–27 — Jury selection. Defense objects to statements made to the jury pool before voir dire.

June 28 — Opening arguments.

June 28 – July 13 — Government's case-in-chief.

July 19 — Defense rests.

July 20 – July 24 — Government rebuttal.

July 25 — Closing arguments conclude.

July 26 — Jury returns verdicts: acquittal on all fraud counts ; conviction on a single count.

October — DOJ Office of Professional Responsibility (OPR) opens an investigation into the government's conduct in the case.

November 28 — Sentencing hearing. The court rejects the government's sentencing enhancements, including the government's “elderly victims” enhancement, finding no evidence the defendants targeted elderly persons.

2018

January 9 — Government files a notice to correct the record, acknowledging that prior representations to the court were incorrect and that the government did obtain and possess documents it had previously stated it did not possess.

January 11 — Court stays the surrender date.

March 8 — Surrender date extended.

June (approx.) — Court grants full bond pending appeal and stays surrender.

October 12 — Defense files a motion for in camera review of OPR records.

2019

February — Judge orders the government to unseal previously sealed misconduct materials filed in open court.

November 21 — Reviewing magistrate issues order authorizing defense discovery of OPR documents.

2020

February 28 — Defense files joint motion for new trial.

December 3 — Hearing on the new-trial motion.

2021

July 16 — At a status conference, the court verbally announces it will grant a new trial and set aside the judgments.

2022

November 18 — Court issues written order granting new trial and vacating the convictions and sentences.

2023

February 16 — Court restricts the government to evidence available to it before the compromised cooperation began in February 2016, finding no prejudice to the government in proceeding to trial on the original evidentiary record.

March 20 — DOJ Professional Misconduct Review Unit issues findings against one of the prosecutors, imposing a 14-day unpaid suspension and referring the matter to the state bar.

April 19 — Court hearing at which the court questions the wisdom of proceeding to a retrial. New trial date set for January 2024.

July 28 — Government initiates plea discussions. Defense rejects the government's initial offers.

September 11 — Non-plea deferred prosecution agreement reached.

2024

January 26 — Change-of-plea hearing for the remaining defendants.

February 26 — Hearing: no incarceration, three years' probation, and a $100 court fee for each defendant.

February 28 — Deferred-prosecution agreement filed and approved.

2025

March 3 — Indictment against defendant is dismissed following completion of the deferred-prosecution terms and 100 hours of community service.

December 9 — State bar files a formal complaint for sanctions against one of the prosecutors.

2026

February 26 — State bar files a formal complaint against the second prosecutor. The two matters are consolidated by court order.

April 27 — Initial hearing scheduled before the bar arbiter. Recommendations to the state Supreme Court expected within six months.

 

Related FTC civil matter

The Federal Trade Commission brought a separate civil action arising from the same underlying sweepstakes activity that was the subject of the criminal case. It was filed in the U.S. District Court for the Southern District of Florida (FTC v. Mail Tree Inc., et al., Case No. 15-61034-CIV) and resolved by stipulated order without any admission of liability or any finding by the court.

2015

Filed — FTC files a civil complaint under Section 13(b) of the FTC Act relating to prize-promotion practices.

2024

June 21 — Court enters stipulated orders for injunction. Under the terms, each individual is restrained from prize promotion marketing. The orders are entered by consent, without any admission of liability and without any monetary judgment.

August — Court enters a separate stipulated order as to an additional individual defendant on comparable terms.