Justia White Collar Crime Opinion Summaries

The Eighth Circuit affirmed defendant's conviction for bribing an Arkansas state official. The court held that the indictment adequately stated the offenses of honest-services and federal-funds bribery; because the indictment stated an offense, defendant's assertion that the government constructively amended the indictment also failed; defendant's objections to the jury instructions for honest-services bribery and federal-funds bribery were rejected; defendant's evidentiary challenges were rejected; and the district court's amount of loss calculation was not clearly erroneous. View "United States v. Suhl" on Justia Law

In 2004-2009, the IRS investigated Marinello’s tax activities. In 2012, Marinello was indicted for violating 26 U.S.C. 7212(a) (the Omnibus Clause), which forbids “corruptly or by force or threats of force . . . obstruct[ing] or imped[ing], or endeavor[ing] to obstruct or impede, the due administration” of the Internal Revenue Code. The judge instructed the jury that it must find that Marinello “corruptly” engaged in at least one specified activity, but was not told that it needed to find that Marinello knew he was under investigation and intended corruptly to interfere with that investigation. The Second Circuit affirmed his conviction. The Supreme Court reversed. To convict a defendant under the Omnibus Clause, the government must prove the defendant was aware of a pending tax-related proceeding, such as a particular investigation or audit, or could reasonably foresee that such a proceeding would commence. The verbs “obstruct” and “impede” require an object. The object in 7212(a) is the “due administration of [the Tax Code],” referring to discrete targeted administrative acts rather than every conceivable task involved in the Tax Code’s administration. In context, the Omnibus Clause serves as a “catchall” for the obstructive conduct the subsection sets forth, not for every violation that interferes with routine administrative procedures. A broader reading could result in a lack of fair warning. Just because a taxpayer knows that the IRS will review her tax return annually does not transform every Tax Code violation into an obstruction charge. View "Marinello v. United States" on Justia Law

Ballard obtained a $280,000 loan from SBH to construct the Stone Fence residence, then requested another $90,000 to finish the property. There was insufficient equity to cover that amount; SBH lent him $20,000. Ballard obtained construction loans on properties in Bradley. Grant was the SBH loan officer for all three properties. Ballard submitted required Sworn Contractor’s Statements and Owner’s Payment Authorizations to the Kankakee County Title Company (KCTC), identifying the material and labor costs supposedly associated with his work on the Bradley properties. Ballard obtained $188,000 for the Bradley properties, where no work was performed. Ballard used the funds to complete Stone Fence. An SBH employee discovered Ballard’s scheme. Ballard was charged with three counts of bank fraud, 18 U.S.C. 1344. At trial, Ballard admitted that he had misdirected funds; he argued a “good faith” defense that Grant and his supervisors knew and authorized Ballard’s acts and pressured him to complete Stone Fence. Ballard also claimed he did not read or sign the loan documents, implying that someone forged his signature. After Ballard was convicted, his attorney obtained a previously undisclosed audio recording of Grant, made during a prior, unrelated criminal investigation. The Seventh Circuit affirmed the district court in granting a new trial, finding the recording material. View "United States v. Ballard" on Justia Law

Ballard obtained a $280,000 loan from SBH to construct the Stone Fence residence, then requested another $90,000 to finish the property. There was insufficient equity to cover that amount; SBH lent him $20,000. Ballard obtained construction loans on properties in Bradley. Grant was the SBH loan officer for all three properties. Ballard submitted required Sworn Contractor’s Statements and Owner’s Payment Authorizations to the Kankakee County Title Company (KCTC), identifying the material and labor costs supposedly associated with his work on the Bradley properties. Ballard obtained $188,000 for the Bradley properties, where no work was performed. Ballard used the funds to complete Stone Fence. An SBH employee discovered Ballard’s scheme. Ballard was charged with three counts of bank fraud, 18 U.S.C. 1344. At trial, Ballard admitted that he had misdirected funds; he argued a “good faith” defense that Grant and his supervisors knew and authorized Ballard’s acts and pressured him to complete Stone Fence. Ballard also claimed he did not read or sign the loan documents, implying that someone forged his signature. After Ballard was convicted, his attorney obtained a previously undisclosed audio recording of Grant, made during a prior, unrelated criminal investigation. The Seventh Circuit affirmed the district court in granting a new trial, finding the recording material. View "United States v. Ballard" on Justia Law

The First Circuit affirmed Defendant’s convictions for tax evasion, unlawful distribution of controlled substances, and health-care fraud, holding that Defendant was fairly tried and lawfully convicted. The Court held (1) the district court did not err in admitting other-acts evidence regarding Defendant’s sexual abuse of his daughter; (2) any error in the other evidentiary rulings disputed by Defendant on appeal were harmless; (3) the district court did not err in refusing to sever the tax evasion counts; (4) Defendant’s challenges to the district court’s jury instructions on the drug-distribution counts were unavailing; and (5) the evidence was sufficient to sustain Defendant’s conviction on the drug-distribution counts. View "United States v. Sabean" on Justia Law

The First Circuit affirmed Defendant’s convictions for tax evasion, unlawful distribution of controlled substances, and health-care fraud, holding that Defendant was fairly tried and lawfully convicted. The Court held (1) the district court did not err in admitting other-acts evidence regarding Defendant’s sexual abuse of his daughter; (2) any error in the other evidentiary rulings disputed by Defendant on appeal were harmless; (3) the district court did not err in refusing to sever the tax evasion counts; (4) Defendant’s challenges to the district court’s jury instructions on the drug-distribution counts were unavailing; and (5) the evidence was sufficient to sustain Defendant’s conviction on the drug-distribution counts. View "United States v. Sabean" on Justia Law

The First Circuit affirmed the convictions of co-defendants Doris Morel and Erika Tomasino for conspiracy and multiple fraud-related counts based on their participation in a multi-year tax-return fraud scheme.On appeal, Morel raised only a Batson jury claim. Tomasino adopted the Batson claim and raised four claims of her own. The First Circuit denied the claims, holding (1) the Batson challenge patently lacked merit; (2) the government produced sufficient evidence to support Tomasino’s conviction for aggravated identity theft; (2) the district court did not err in giving the jury a Pinkerton instruction; (3) the district court did not commit clear error in admitting against Tomasino incriminating statements made by Morel; and (4) the district court properly admitted testimony from IRS Special Agent Matthew Amsden. View "United States v. Morel" on Justia Law

RTSI produces and maintains traffic safety systems. Rosenberg was RTSI’s Vice President of Sales. RTSI contracted to manage Chicago's automated red light enforcement program. In 2012, the Chicago Tribune published articles, disclosing an improper relationship between a city employee (Bills) and RTSI. The city removed RTSI’s bid for the new contract. The City Office of Inspector General (OIG) investigated the bribery scheme. RTSI conducted an independent investigation and provided OIG with information. OIG advised Rosenberg that he had a duty to cooperate and that his statements would not be used against him in a criminal proceeding. Rosenberg described the bribery scheme between RTSI and Bills. RTSI terminated Rosenberg’s employment.The Tribune reported that RTSI courted Bills with thousands of dollars in free trips. Rosenberg sued RTSI under the qui tam provision of the City’s False Claims Ordinance, alleging that RTSI engaged in bribery and other illegal activities to obtain a city contract. The city intervened, making additional claims. The court dismissed Rosenberg as relator. The remaining parties settled and moved for dismissal with prejudice. Rosenberg unsuccessfully sought an award of a relator’s share of the settlement and attorney’s fees for his lawyer’s contributions to the case. The Seventh Circuit affirmed, noting that Rosenberg helped to perpetrate the fraud and referring to Rosenberg’s “audacity.” Rosenberg was neither the original source of the information nor was he a volunteer under the ordinance. View "Rosenberg v. Redflex Traffic Systems, Inc." on Justia Law

The Fourth Circuit affirmed defendant's conviction and sentence for one count of bank fraud conspiracy and two counts of aggravated identity theft. The court held that the evidence was sufficient to convict defendant of bank fraud conspiracy; the district court did not err in failing to conduct an in camera review to determine whether material required disclosure under the Jencks Act, 18 U.S.C. 3500(b), or pursuant to Brady v. Maryland, 373 U.S. 83 (1963); the district court did not err by declining to provide defendant's requested jury instruction on accomplice testimony, and by providing the jury with a written copy of the jury instruction on aiding and abetting liability; the district court did not erroneously apply a two-level sentencing enhancement for obstruction of justice, a ten-level sentencing enhancement based on the amount of loss, a two-level sentencing enhancement based on use of sophisticated means, a three-level sentencing enhancement based on his role in the offense as a manager or supervisor; and the district court did not abuse its discretion by requiring part of defendant's sentences to run consecutively. View "United States v. Savage" on Justia Law

The Eleventh Circuit affirmed Defendant Skillern and Nelson's convictions for mail fraud, wire fraud, and associated conspiracies. Defendants' convictions stemmed from their efforts to peddle non-existent gold to the public through their company, Own Gold LLC. In this case, Skillern alleged that the district court deprived him of his Sixth Amendment right to the assistance of counsel when, just before an overnight recess that occurred while Skillern was on the stand, the district court granted his lawyer's request to speak to him "about matters other than his testimony." The court held that the district court did not commit constitutional error in light of the court's en banc decision in Crutchfield v. Wainwright, 803 F.2d 1103 (11th Cir. 1986), because the record did not reflect that Skillern (or his lawyer) actually wanted or planned to discuss his testimony during the recess. The court rejected defendants' remaining contentions. View "United States v. Nelson" on Justia Law