United States v. MICFO, LLC
23-4592
| 4th Cir. | Aug 22, 2025Background:
- Amir Golestan, founder and CEO of Micfo LLC, pleaded guilty (both personally and for the company) to 20 counts of wire fraud for fraudulently obtaining and selling IPv4 internet addresses.
- Golestan created fictitious companies and individuals to acquire approximately 1.3 million IPv4 addresses from ARIN (American Registry for Internet Numbers), netting $3.3 million in profits.
- After entering his guilty plea, Golestan moved to withdraw it, arguing that Supreme Court precedent (Ciminelli) invalidated his prosecution theory and that he was not properly advised about immigration (denaturalization) consequences.
- Golestan also claimed that his counsel was ineffective on these grounds and that he might not have had authority to plead for Micfo.
- The district court denied all withdrawal motions and sentenced Golestan to 60 months’ incarceration and Micfo to 30 days’ probation, alongside restitution and forfeiture orders.
- The Fourth Circuit affirmed all district court judgments on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Failure to Advise of Immigration Consequences | Golestan: Rule 11(b)(1)(O) required warning about denaturalization risk. | USA: Golestan was a naturalized citizen, Rule 11(b)(1)(O) not triggered. | Error but harmless: warning required, but no effect on Golestan’s rights. |
| Validity of Prosecution Theory under Ciminelli | Golestan: Ciminelli invalidates prosecution under wire fraud statute. | USA: Case not about right-to-control; relied on traditional wire fraud. | Ciminelli inapplicable; wire fraud conviction stands. |
| Ineffective Assistance of Counsel | Golestan: Counsel failed to advise on denaturalization risk (Padilla). | USA: No conclusive record of ineffective assistance on direct appeal. | Not addressed on direct appeal; record insufficient. |
| Authority to Plead Guilty for Micfo | Micfo: Golestan lacked authority to plead for company. | USA: Golestan affirmed authority under oath; counsel was present. | Golestan had authority; plea stands. |
Key Cases Cited
- Carpenter v. United States, 484 U.S. 19 (1987) (intangible forms of property, like confidential business information, can be property under fraud statutes)
- Cleveland v. United States, 531 U.S. 12 (2000) (state regulatory interests are not "property" under federal fraud statutes)
- United States v. Ciminelli, 598 U.S. 306 (2023) (invalidated the "right-to-control" theory for property under federal fraud)
- McNally v. United States, 483 U.S. 350 (1987) (federal fraud statutes protect traditional property rights)
- Padilla v. Kentucky, 559 U.S. 356 (2010) (Sixth Amendment requires counsel to warn about immigration consequences of a guilty plea)
- Massaro v. United States, 538 U.S. 500 (2003) (ineffective assistance claims normally not reviewed on direct appeal unless record conclusive)