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DiCosola started a business that produced compact discs in novelty shapes, for use as promotional items. The business morphed into a full‐service printing business, reaching about $1 million in gross annual sales and employing up to 10 people, including DiCosola’s immigrant father, who invested his retirement savings. In 2005, DiCosola started a side business for producing music, which sapped cash from the printing business. DiCosola’s 2007 loan application was rejected. He reapplied in 2008, providing fabricated tax returns that inflated his income by hundreds of thousands of dollars. Citibank issued DeCosola a loan of $273,500. DiCosola similarly used fabricated tax returns to obtain loans from Amcore, for $450,000 and $300,000. In 2009, after a few payments, DiCosola defaulted on the loans. In 2009, DiCosola falsified IRS forms to claim a refund of $5.5 million. In 2012, DiCosola was indicted for bank fraud, 18 U.S.C. 1344; making false statements to a bank, 18 U.S.C. 1014; wire fraud affecting a financial institution, 18 U.S.C. 1343; filing false statements against the United States, 18 U.S.C. 287. DiCosola was found guilty, sentenced to 30 months’ imprisonment, and ordered to pay restitution of $822,088.00. The Seventh Circuit affirmed, rejecting challenges relating to the testimony of DiCosola’s accountant. View "United States v. DiCosola" on Justia Law

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In 1990, Stan and Bara Jurcevic opened an account at the St. Paul Croatian Federal Credit Union (SPCFU). The National Credit Union Administration Board (NCUAB) charters and insures credit unions, 12 U.S.C. 1766, and can place a credit union into conservatorship or liquidation. From 1996-2010, Stan obtained $1.5 million in share-secured loans from SPCFU. Federal auditors discovered that SPCFU’s COO had been accepting bribes in exchange for issuing loans and disguising unpaid balances. SPCFU had $200 million in unpaid debts. NCUAB placed SPCFU into conservatorship and eventually liquidated its assets. NCUAB alleged that Jurcevic failed to disclose a $2,500,000 loan from PNC and an impending decrease in his income; and that he planned to use the loan funds to save his company, Stack. PNC obtained a $2,000,000 judgment against Jurcevic and Stack. NCUAB sued the Jurcevics and Stack and obtained an injunction, freezing the Jurcevics’ and Stack’s assets, except for living expenses. The district court dismissed claims of fraud, conspiracy, and conversion as time-barred and dismissed claims against Bara and Stack as a matter of law. Jurcevic appealed and filed for Chapter 7 bankruptcy. The Board cross-appealed and intervened in the Chapter 7 proceedings. The Sixth Circuit affirmed the asset freeze; the court properly employed the preliminary injunction factors. The court reversed the dismissals because the court did not consider the date of the NCUAB’s appointment and the date of discovery as possible accrual dates for the limitations statute. View "National Credit Union Administration Board v. Jurcevic" on Justia Law

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The Fifth Circuit affirmed Defendants Atul and Jiten "Jay" Nandas' convictions for various charges stemming from a conspiracy to fraudulently procure H-1B visas. The court held that the district court did not err by admitting into evidence a letter that Jay wrote, because the letter did not directly allude to Atul; even if it was error to admit the letter, such error was harmless; there was no plain error in the wire fraud charges; the district court did not plainly err by not giving the jury a unanimity instruction; even granting arguendo that it was error to admit evidence of additional visa petitions and medical insurance, such error did not affect defendants' substantial rights; there was no error in applying a two point sentencing enhancement under USSG 2B1.1(b)(10)(B) and (C) for committing a substantial portion of the alleged scheme from outside the United States and for committing an offense involving sophisticated means of concealment; any possible error in the loss calculation was harmless; and defendants' claim that the district court did not consider sentencing disparity bordered on the frivolous. View "United States v. Nanda" on Justia Law

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The Eighth Circuit affirmed Defendants Springer and Makohoniuk's convictions for bank fraud. The court held that there was sufficient evidence to demonstrate that defendants intended to cause a financial loss and that their scheme subjected the financial institutions to a risk of loss; the jury instructions did not put defendants at risk of being convicted of bank fraud based on trivial irrelevancies where the "materiality" qualification obviates any fear that the instructions could allow the jury to convict defendants for harmless misrepresentations; the jury had ample evidence to find materiality; the indictment fully and fairly apprised defendants of the charges they must meet at trial; submission of an aiding and abetting instruction was not error; the government did not violate Federal Rule of Evidence 404(b) by admitting evidence of the underlying scheme; the jury had sufficient evidence to conclude that the HUD-1s were false; the district court did not err by sua sponte severing Makohoniuk's trial from Springer's; and Makohoniuk knowingly waived his right to testify at trial. View "United States v. Springer" on Justia Law

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Most commodities trading takes place with the participants using computers to execute hyper‐fast trading strategies at speeds, and in volumes, that far surpass those common in the past. Coscia commissioned and used a computer program to place small and large orders simultaneously on opposite sides of the commodities market in order to create illusory supply and demand, to induce artificial market movement. He was convicted under the anti‐spoofing provision of the Commodity Exchange Act, 7 U.S.C. 6c(a)(5)(C) and 13(a)(2), and of commodities fraud, 18 U.S.C. 1348(1) and was sentenced to 36 months’ imprisonment. The Act defines “spoofing” as “bidding or offering with the intent to cancel the bid or offer before execution.” The Seventh Circuit affirmed, finding the convictions supported by sufficient evidence. The anti‐spoofing provision provides clear notice and does not allow for arbitrary enforcement; it is not unconstitutionally vague. With respect to the commodities fraud violation, the court upheld a jury instruction on materiality: that the alleged wrongdoing had to be “capable of influencing the decision of the person to whom it is addressed.” The district court properly applied a 14‐point loss enhancement in calculating the sentence, given the nature and complexity of Coscia’s criminal enterprise. View "United States v. Coscia" on Justia Law

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A jury convicted Matthew Williams of bank fraud and aggravated identity theft. He appealed, arguing the evidence against him was insufficient. Williams began a mortgage loan application at Pulaski Bank (the “bank”) using his father’s personal and financial information and his status as a Purple Heart veteran. After his father received the application packet in the mail, he called the bank to explain he had not applied for a loan. The bank referred the matter to law enforcement, but continued to work with Williams to process the loan and obtain additional documents to clarify the applicant’s identity. The bank sent Williams a notice of incompleteness because it lacked several required documents, signatures, and a photo identification. In response, Williams provided some of the required documents to the bank, including a fake earnings statement and a letter expressing his intent to proceed with the loan. The bank sent a final notice of incompleteness to Williams. Williams did not respond, and the bank closed his application file. Mr. Williams argues his misrepresentations on the incomplete application could not support a bank fraud conviction because they (1) were not material to the bank’s decision to issue him a loan; and (2) did not impose a risk of loss on the bank. Finding no reversible error in the district court's judgment, the Tenth Circuit affirmed. View "United States v. Williams" on Justia Law

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A jury convicted Matthew Williams of bank fraud and aggravated identity theft. He appealed, arguing the evidence against him was insufficient. Williams began a mortgage loan application at Pulaski Bank (the “bank”) using his father’s personal and financial information and his status as a Purple Heart veteran. After his father received the application packet in the mail, he called the bank to explain he had not applied for a loan. The bank referred the matter to law enforcement, but continued to work with Williams to process the loan and obtain additional documents to clarify the applicant’s identity. The bank sent Williams a notice of incompleteness because it lacked several required documents, signatures, and a photo identification. In response, Williams provided some of the required documents to the bank, including a fake earnings statement and a letter expressing his intent to proceed with the loan. The bank sent a final notice of incompleteness to Williams. Williams did not respond, and the bank closed his application file. Mr. Williams argues his misrepresentations on the incomplete application could not support a bank fraud conviction because they (1) were not material to the bank’s decision to issue him a loan; and (2) did not impose a risk of loss on the bank. Finding no reversible error in the district court's judgment, the Tenth Circuit affirmed. View "United States v. Williams" on Justia Law

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Ferriero was chairman of the Bergen County Democratic Organization (BCDO) from 1998 until he resigned in 2009. Ferriero took payments from a vendor (C3) that provided emergency notification systems for local governments in exchange for recommending to officials that their towns hire the firm. Ferriero’s corporation executed a contract, described as an “agreement . . . to provide governmental relations consulting services required in connection with marketing of a product known as C3 and any other related products or services.” The municipalities that bought the product were unaware that Ferriero stood to benefit financially. The Third Circuit affirmed Ferriero’s convictions, a forfeiture order, and sentence based on violations of the Travel Act, 18 U.S.C. 1952, the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. 1962(c), and the federal wire fraud statute, 18 U.S.C. 1343. The evidence was sufficient to prove New Jersey bribery as a predicate act for his Travel Act and RICO convictions. There was sufficient evidence for a rational juror to conclude Ferriero participated in the conduct of the BCDO’s affairs by means of a pattern of bribery and to conclude that failure to disclose Ferriero’s C3 interest amounted to a materially false or fraudulent misrepresentation. View "United States v. Ferriero" on Justia Law

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Ferriero was chairman of the Bergen County Democratic Organization (BCDO) from 1998 until he resigned in 2009. Ferriero took payments from a vendor (C3) that provided emergency notification systems for local governments in exchange for recommending to officials that their towns hire the firm. Ferriero’s corporation executed a contract, described as an “agreement . . . to provide governmental relations consulting services required in connection with marketing of a product known as C3 and any other related products or services.” The municipalities that bought the product were unaware that Ferriero stood to benefit financially. The Third Circuit affirmed Ferriero’s convictions, a forfeiture order, and sentence based on violations of the Travel Act, 18 U.S.C. 1952, the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. 1962(c), and the federal wire fraud statute, 18 U.S.C. 1343. The evidence was sufficient to prove New Jersey bribery as a predicate act for his Travel Act and RICO convictions. There was sufficient evidence for a rational juror to conclude Ferriero participated in the conduct of the BCDO’s affairs by means of a pattern of bribery and to conclude that failure to disclose Ferriero’s C3 interest amounted to a materially false or fraudulent misrepresentation. View "United States v. Ferriero" on Justia Law

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The Fourth Circuit affirmed the district court's restitution calculation, determination of loss for purposes of sentencing, and denial of defendant's motion for recusal. In this case, defendant was convicted of orchestrating a scheme to defraud mortgage companies. The court held that the evidence supported the district court's restitution calculation; the district court did not abuse its discretion in determining the loss amount where it used the correct loss figure in sentencing defendant under the advisory Guidelines; and the district court did not abuse its discretion in its determination not to recuse where the district court's ownership of stock in some of the victim lenders did not require recusal. View "United States v. Stone" on Justia Law