The U.S. Court of Appeals for the Fourth Circuit has affirmed a 63-month prison sentence for Nayeem Choudhury, a North Carolina man convicted of operating a $9.3 million Ponzi scheme. The appellate court panel ruled that the sentence is reasonable and was imposed after proper consideration of public interest and federal sentencing guidelines.
A three-judge panel determined there were no valid grounds for appeal in the case, confirming that the Middle District of North Carolina and U.S. District Judge Catherine C. Eagles correctly applied the sentencing factors outlined in United States Code Section 3553(a). These factors include the defendant’s criminal history, sentencing options, and the need to protect the public.
Choudhury pled guilty to wire fraud and the use of manipulative and deceptive devices, admitting to running the Ponzi-style scheme. He also settled related civil claims with the U.S. Securities and Exchange Commission in 2023, agreeing to repay the funds obtained through the fraudulent operation.
Despite requesting probation after his guilty plea, Choudhury did not withdraw his plea when made aware of the potential federal sentencing range. The Fourth Circuit panel found no procedural errors in the sentencing process and confirmed the validity of both the plea and the sentence.
The court directed Choudhury’s defense counsel to inform him of his right to petition the U.S. Supreme Court for further review. If the attorneys determine such a petition is frivolous, they may seek to withdraw from representation.
The case, USA v. Nayeem Choudhury, case number 24-4557, remains a significant ruling in federal fraud enforcement efforts.
