Retrieve the Court's Judgment here.
December 1st was Michael Osborn's day of reckoning and I love Colorado justice. The disdain for Mike dripped from both Prosecutor Linda Kaufman and Judge Christine Arguello. They verbally attacked him in a way I have never seen in California. Right from the word go, it was obvious that the Judge was going to throw the book at him for his masterminding of the Commissum Universes scam in which Mike and co-Defendant Corey Engelen embezzled $695,000 from ten victims who believed that they were investing in funds that did not exist.
Mike received a 77 month sentence, of which 80% must be served in a Federal conviction. When his term is up, he will be subjected to 3 years of supervised release. Mike was also ordered to pay a $100,000 fine, $200 in costs and make restitution in the amount of $695,000. All of these amounts are subject to interest.
Mike made a brief statement to the court, expressing regret for the shame he has brought upon his wife and three sons. He neglected to address his other three children whom he has abandoned.
Public Defender Matthew Belcher, made a laughable statement praising Mike's forthrightness and admission of his crimes and his stated desire to make restitution. It's difficult to decipher whether Belcher was fulfilling his duty in making a full-throated defense of Osborn, or if he was another person conned by Mike. Likely the latter. Every effort to gain the Judge's favor was rejected.
In pronouncing the sentence the Judge look right at Osborn and said, "Your conduct indicates to me that you're a con man." She doesn't even know the half of it.
Corey is scheduled to be sentenced in January and is expected to receive about a 24 month term. Mike's sentence was stiffer because the Judge tagged him for being the "leader", "organizer", "supervisor" of the criminal activity and because he "exercised some degree of control". His California conviction in the Car Max and check fraud case was also considered.
The Judge sustained Osborn's objection to my request to address the court, so I was not permitted to make a statement, but nonetheless the money spent to go to Denver and watch the proceedings was worth the price of admission.
Here are some of my favorite soundbites from the hearing.
"Money was never invested. It was spent as soon as it was received."
"[Osborn] relocated every few weeks"
"Not forthcoming in finances [to probation officer]."
"[Sentencing] guidelines are not strict enough."
"Would have given a stiffer sentence if not for waiver of appellate rights."
"Took extraordinary steps to avoid arrest."
"[Osborn] lied to probation office about residence."
It was evident that Michael's behavior during his release on bond did not impress either the Prosecutor, Judge or probation officer. The Prosecutor outlined Mike's deceptive behavior which violated the conditions of his release. The Osborns moved frequently without informing the probation officer where they were living, until they finally settled into a New York apartment, which they have been renting for the last six months at the astronomical price of $11,735 per month.
Also in violation with the terms of his release, Mike co-mingled his money with Shenae, presenting her bank accounts in finance reports as well as a PayPal account. He also reported having a net worth of $10 million. That really bit him in the ass in the eyes of the Judge who wasn't buying any part of it. Odd that a guy worth so much would have availed himself of the public defender's services to fight for his freedom.
The 77 month sentence included a 10 month discount that was granted in exchange for Michael having waived his right to appeal and because he cooperated with the prosecution of Corey Engelen. Reportedly, he spilled the beans on many people including Attorney Jehu Hand, who is facing his own long prison sentence following a grand jury indictment, in an attempt to curry favor with the prosecution and the court. Nevertheless, the Judge only granted only a portion of the discount the Prosecutor recommended. The Judge was inclined to give Mike the maximum sentence and even made statements suggesting that she would impose a stiffer sentence if she could.
Mike requested that he be released on his bond after sentencing and that he be allowed to surrender to serve his sentence on January 7, 2017. He felt that he would be able to earn enough money by then to make the restitution to his victims. The Judge and Prosecutor were having none of that. They rightly took the position that if Mike really had $10 million in assets, he could have already made restitution. Furthermore, Mike's claimed sources of income were vague. Among the reasons that he was deemed a flight risk was his failure to report his residence to the probation officer as required. Of particular interest was the revelation that Michael immediately arranged to move his family from the Connecticut home they were renting when he learned that the Feds were coming for him. He hired a moving company, requesting a same day move, but settled for a next day move. The mover stored all of the Osborn's possessions and then liquidated them at auction because Michael did not pay the bill (Surprise!). It took several months for the Feds to find Michael, who was deliberately evading arrest. They finally located him at New York's Beacon Hotel, after calling around to hotels close to the proximity of the Wells Fargo branch where he was making periodic deposits to my bank account towards my Judgment. I had informed the IRS agent of the address of that branch.
My relationship with Mike was also key in denying his request for a January 7th surrender. Shenae's
short-lived blog was taken down soon after I told Mike that I saw it and that I was about to post proof that Shenae was lying, especially about me. However, I was able to save a pdf copy of the site and I assume that Prosecutor Kaufman retrieved it from this website which she did access. In the discussion of Mike's request, Kaufman quoted a statement from Shenae's blog, "I can literally pack up a family and all of our belongings in a matter of 20 minutes! Practice makes perfect although I don't recommend it." That didn't give anybody a warm fuzzy feeling about the probability of Mike fulfilling his promise to surrender. Neither did his failure to appear at several court-ordered Judgment Debtor Exams with respect to his debt to me.
Mike's failure to appear at hearings regarding his Car Max arrest and at a criminal case in Nevada for bouncing checks at The Venetian Hotel were also cited in the denial of his request for self-surrender.
Finally the Prosecutor made specific note of the fact that the SEC had already informed Mike that they were going to bring charges for an investment scheme conducted in 2015, and with that looming over his head, he was even more likely to go on the lam.
It is likely that the SEC is referring to the AgedDebt.net scheme that cost investors millions of dollars last year and which the Michigan office of the FBI is currently investigating. If this is indeed the chicken that is coming home to roost, then Shenae Osborn, Alexandre Schneer and Virgil Williams should probably be concerned about future knocks at their doors.
Michael is now at
Englewood FCI, a minimum security facility that also houses Jared Fogel, the Subway sandwich spokesman serving a long stint instead of footlongs because he enjoys the company of children. Osborn's stay there may be temporary, as he his looking to be closer to Shenae and her kids on the East Coast. He requested that the Judge specifically assign him to Danbury FCI in Connecticut, but the Judge indicated that she wasn't about to do Mike any favors and would leave it to the Bureau of Prisons to decide where he should be housed.
