United States v. MICFO, LLC
23-4592
| 4th Cir. | Aug 25, 2025Background
- Amir Golestan, founder and CEO of Micfo, LLC, pleaded guilty (on behalf of himself and Micfo) to 20 counts of wire fraud for fraudulently obtaining and reselling IP addresses.
- The fraudulent scheme involved creating fictitious companies and individuals to obtain additional IPv4 addresses from the American Registry for Internet Numbers (ARIN), generating approximately $3.3 million in profit.
- Both Golestan and Micfo moved to withdraw their guilty pleas after entry, arguing in part that intervening Supreme Court precedent (Ciminelli v. United States) invalidated their wire fraud convictions.
- Golestan also claimed the district court failed to warn him of possible immigration consequences of his plea, and alleged ineffective assistance of counsel for the same.
- Micfo separately argued Golestan lacked authority to plead guilty on its behalf.
- The district court denied these motions, sentenced Golestan to 60 months in prison and Micfo to probation, and both appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Motion to Withdraw Guilty Plea based on Ciminelli | Prosecution theory invalid under Ciminelli (right-to-control) | Charged under traditional property-based wire fraud | No abuse of discretion; Ciminelli not applicable |
| Failure to Advise on Immigration Consequences | District court failed Rule 11(b)(1)(O); plea invalid | Rule not triggered for a U.S. citizen; error harmless | Error harmless; did not affect substantial rights |
| Ineffective Assistance of Counsel | Counsel failed to warn of denaturalization consequences | (N/A on direct appeal) | Claim not cognizable on direct appeal |
| Authority to Plead for Corporate Defendant | Golestan not authorized to enter plea for Micfo | Golestan had requisite authority; record supports this | No abuse of discretion; plea stands |
Key Cases Cited
- Ciminelli v. United States, 598 U.S. 306 (2023) (Supreme Court rejected the "right-to-control" theory under federal fraud statutes)
- Padilla v. Kentucky, 559 U.S. 356 (2010) (counsel must advise clients of deportation risks when pleading guilty)
- Carpenter v. United States, 484 U.S. 19 (1987) (confidential business information as property under fraud statutes)
- Cleveland v. United States, 531 U.S. 12 (2000) (regulatory interests are not traditional property for fraud statutes)
- Massaro v. United States, 538 U.S. 500 (2003) (ineffective assistance claims generally not proper for direct appeal)