Us V. Dokich Case Study

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Business Research Misrepresentation In the court case United States v. Dokich, case No. 08-2850, appealed and sustained on July 21, 2010, Melvin Dokich defrauded many investors for millions. Dokich sold stock for a fraudulent company named Efoora Incorporated. Efoora made claims of conducting research for developing diagnostic tests for HIV, mad-cow disease, and blood glucose levels. Efoora’s claims of research and testing was feloniously supported, and staged, by inviting potential investors and customers to Efoora’s headquarters in Buffalo Grove, Illinois. The potential investors, or victims, received tours of manufacturing facilities staffed by temporary laborers and filled with fake test kits and empty boxes. Dokich and others who sold stock lied about Efoora's sales figures, promised that the company would soon be traded publicly, and falsely said that federal agencies were poised to approve its diagnostic tests for sale in the United States. During his time with Efoora, Dokich and his group defrauded thousands of investors of millions of dollars. In 2006, a grand jury returned an indictment charging Dokich-along with David Grosky, Efoora's CEO, and Craig Rappin, its COO-with nine counts of mail and wire fraud, four counts of money laundering, four counts of illegal monetary transactions, and 33 counts of…show more content…
The Mandatory Victims Restitution Act of 1996 (MVRA), requires district courts to order restitution in cases of mail fraud, among other federal crimes. The statute makes restitution available to victims of fraud to the extent that those victims would have been entitled to recover in a civil suit against the criminal. Based on the established statutes, Circuit Judge, Wood, found no reason to overturn the original district court’s ruling and affirmed the

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