DOCSLIB.ORG

Semiannual Report to Congress April 1, 2010, Through September 30, 2010 Profile of Performance

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Semiannual Report to Congress April 1, 2010, Through September 30, 2010 Profile of Performance U.S. Department of Housing and Urban Development Office of Inspector General Semiannual Report to Congress April 1, 2010, through September 30, 2010 Profile of Performance Audit profile of performance for the period April 1, 2010, through September 30, 2010 Results This reporting period FY 10 totals Recommendations that funds be put to better use1 $225,136,232 $813,264,347 Recommended questioned costs1 $109,919,327 $155,188,440 Collections from audits $14,150,383 $32,706,317 Administrative sanctions 3 4 Investigation profile of performance for the period April 1, 2010, through September 30, 2010 Results This reporting period FY 10 totals Funds put to better use $40,252,087 $76,756,637 Recoveries/receivables $126,694,457 $519,225,525 Arrests2 781 1,393 Indictments/informations 755 1,235 Convictions/pleas/pretrial diversions 389 898 Civil actions 79 129 Administrative sanctions3 168 371 Suspensions 41 90 Debarments 49 95 Personnel actions4 28 58 Search warrants 57 99 Subpoenas issued 1037 1827 Hotline profile of performance for the period April 1, 2010, through September 30, 2010 Results This reporting period FY 10 totals Funds put to better use $933,674 $1,297,454 Recoveries/receivables $140,614 $215,696 1 This represents all cost transactions during the period in which dollar amounts were reported with any recommendation. 2 Included in the arrests is our focus on the nationwide Fugitive Felon Initiative. 3 Administrative sanctions include limited denial of participation, relocations, removal from program participation, restraining orders, and systemic implication report submitted. 4 Personnel actions include reprimands; suspensions; demotions; or terminations of the employees of Federal, State, or local governments or of Federal contractors and grantees as the result of OIG activities. iii A Message from the Acting Inspector General It is with great pleasure that I present the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) Semiannual Report to Congress, which summarizes the activities and accomplishments of our office for the second half of fiscal year 2010. HUD OIG employees–auditors, agents, attorneys, analysts, and support staff–continue their critical efforts to improve the economy and efficiency of programs administered by HUD. This has been an exceedingly busy and productive period for our office. Our key divisions, working collaboratively in a cross-disciplinary fashion, have achieved significant results on behalf of HUD beneficiaries and American taxpayers. As an active partner in the Financial Fraud Enforcement Task Force, we have been at the forefront of getting the message out to our local communities about collaborative efforts across the government involving our State and local partners. Together, we are investigating and prosecuting significant financial crimes, ensuring swift punishment for those who seek unjust enrichment, recovering proceeds for those who are victimized, and addressing financial discrimination in the lending and financial markets. During the past 6 months, we have issued 115 audit reports with a total of 478 recommendations, including monetary results totaling nearly $278 million. Our investigative work has resulted in 755 indictments; 389 convictions; 168 administrative actions; and more than $126 million in fines, restitutions, and recoveries. We have also issued two inspections and evaluations reports: one on housing counseling services and one on HUD’s Credit Watch system. During this reporting period, we have also focused on our enhanced Civil Fraud Initiative, to which we have dedicated a cadre of forensic auditors. They are concentrating in a concerted fashion on recovering ill-gotten gains from those who commit fraud against HUD programs. The implementation of the American Recovery and Reinvestment Act and its effectiveness are discussed in our 28 audits of different entities, which looked at the capability and efficiency with which the money was spent. Recommendations and improvements on the utilization of these funds are continually provided to the Department. During this reporting period, we completed an initiative known as Operation Watch Dog. This effort started in response to the Federal Housing Administration (FHA) Commissioner’s concern regarding increased default rates against the FHA insurance fund for failed loans. In total, we reviewed 284 FHA loans that were underwritten by 15 direct endorsement lenders to determine whether the loans were underwritten in accordance with FHA requirements. We found that 140 of the 284 loans reviewed were not underwritten in accordance with requirements. As a result, FHA’s insurance fund lost or has the potential to lose nearly $11.2 million from this limited sample. We performed an internal audit of HUD’s Home Equity Conversion Mortgage (HECM) program to determine whether HUD’s adoption and reversal of an informal foreclosure deferral policy for HECM loans A Message from the Acting Inspector General iv that defaulted due to nonpayment of taxes and insurance had a negative effect on the HECM program. We found that HUD’s policy did have a negative effect on the universe of HECM loans and loan servicers. As a result, four servicers contacted were holding almost 13,000 defaulted loans with a maximum claim amount of more than $2.5 billion, and two of the four servicers said that they were awaiting HUD guidance on how to handle them. Further, the servicers had paid taxes and insurance premiums totaling more than $35 million for these 12,958 borrowers, and if HUD does not take action, additional payments will be made in the next 12 months. On another front, a key HUD OIG investigation exemplifies our commitment to pursuing fraud perpetuated against FHA’s mortgage insurance program. Lee Farkas, a former chairman of Taylor, Bean & Whitaker Mortgage Corporation (TBW), an FHA-approved direct endorsement lender and Government National Mortgage Association (Ginnie Mae) issuer, was arrested after his indictment in U.S. District Court, Ocala, FL, for allegedly committing conspiracy and bank, wire, and securities fraud. Farkas and others were indicted for allegedly selling phony or previously pledged loans to investors in the secondary mortgage market and causing TBW to submit false statements to HUD and Ginnie Mae. HUD and these programs experienced almost $2 billion in losses. Our investigators have also been focused on public corruption. The former Alamosa Housing Authority executive director and others were collectively sentenced in U.S. District Court, Denver, CO, to 37 months incarceration, 3 years supervised release, and 5 years probation and ordered to pay HUD nearly $640,000 in restitution for their earlier guilty pleas to committing theft by generating unauthorized housing authority checks. These examples of our audits and investigations show the exceptional work done by our staff, which has resulted in a significant positive impact on fraud and against misuse of taxpayer dollars. Our staff also conducted approximately 60 fraud and prevention awareness briefings to thousands of participants at all levels of government and industry in an effort to educate the public regarding improper activities. I am grateful to all of our employees nationwide who worked so tirelessly during this period. The continuing evolvement of OIG operations comes at an especially important time for the oversight community. Every day, HUD OIG increases its dedication and commitment to becoming a more efficient and effective organization, which enables us to become better at recovering taxpayer dollars and working with our partners to bring those to justice who would seek to harm our vital programs. We look forward to continuing to fulfill our important responsibilities and working with Congress in overseeing these vital programs which support our Nation’s citizenry. Michael P. Stephens Acting Inspector General A Message from the Acting Inspector General v Audit reports issued by program Single-family housing, 24% Multifamily housing, 3% Public and Indian housing, 36% Community planning and development, 29% Other programs, 8% Audit monetary benefits identified by program Single-family housing, 15% Multifamily housing, 2% Public and Indian housing, 24% Community planning and development, 54% Other programs,* 5% * Other programs include financial and information system audits. Audit monetary benefits identified in millions of dollars $183.0 $200 $180 $160 $140 $120 $79.3 $100 $80 $51.1 $60 $18.2 $40 $5.1 $20 $0 Single-family Multifamily Public and Community Other housing housing Indian housing planning and programs development Audit Charts vi Investigative cases opened by program area (total: 711) Single-family housing, 34% (240) Public and Indian housing, 41% (291) Multifamily housing, 8% (55) Community planning and development, 9% (67) Other, 8% (58) Investigative recoveries by program area (total: $126,694,457) Single-family housing, 88% ($111,975,850) Public and Indian housing, 8% ($10,308,337) Multifamily housing, 2% ($1,910,932) Community planning and development, 2% ($2,283,104) Other, 0% ($216,234) Investigative cases closed by program area (total: 331) Single-family housing, 22% (72) Public and Indian housing, 43% (143) Multifamily housing, 9% (29) Community planning and development, 15% (51) Other, 11% (36) Investigation Charts vii Acronyms List AIGA Assistant Inspector General for Audit AIGI Assistant Inspector General for Investigation ARIGA Assistant Regional Inspector General for Audit ARRA American Recovery and
Load more

Recommended publications
  • In the United States District Court for the Middle District of Alabama Northern Division
    Case 2:13-cr-00144-LSC-TFM Document 38 Filed 12/19/13 Page 1 of 28 IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA NORTHERN DIVISION UNITED STATES OF AMERICA ) ) v. ) CASE NO. 2:13-cr-144-MEF-TFM ) [wo] EDMUND MCCALL ) RECOMMENDATION OF THE MAGISTRATE JUDGE I. INTRODUCTION Pursuant to 28 U.S.C. § 636(b)(1) this case was referred to the undersigned United States Magistrate Judge for review and submission of a report with recommended findings of fact and conclusions of law. On August 22, 2013, the Grand Jury for the Middle District of Alabama returned an indictment against Antonio Harris (“Harris”) and defendant, Edmund McCall (“McCall” or “Defendant”). Count 1 of the Indictment alleges McCall and others conspired to use the mail and wire communications to execute a scheme and artifice to defraud the United States by filing false, federal income tax returns from 2010 through October 29, 2012. Count 2-6 of the Indictment alleges McCall and others executed the scheme and artifice to defraud the United States by 5 wire communications between January 16, 2012 and March 7, 2012. Counts 7 and 8 of the Indictment allege Harris and McCall engaged in identity theft and aggravated identity theft in relation to wire fraud. Counts 9 through 12 of the Indictment alleges Harris, McCall and others presented false claims against the United States by filing false tax returns between January 16, 2012 and February 29, 2012. Page 1 of 28 Case 2:13-cr-00144-LSC-TFM Document 38 Filed 12/19/13 Page 2 of 28 Counts 13 through 15 of the Indictment allege Harris filed false claims against the United States by filing false tax returns between January 30, 2013, and February 9, 2013.
    [Show full text]
  • Fraud Against Financial Institutions: Judging Materiality Post- Escobar
    William & Mary Business Law Review Volume 12 (2020-2021) Issue 3 Article 3 April 2021 Fraud Against Financial Institutions: Judging Materiality Post- Escobar Matthew A. Edwards Follow this and additional works at: https://scholarship.law.wm.edu/wmblr Part of the Banking and Finance Law Commons, and the Courts Commons Repository Citation Matthew A. Edwards, Fraud Against Financial Institutions: Judging Materiality Post-Escobar, 12 Wm. & Mary Bus. L. Rev. 621 (2021), https://scholarship.law.wm.edu/wmblr/vol12/iss3/3 Copyright c 2021 by the authors. This article is brought to you by the William & Mary Law School Scholarship Repository. https://scholarship.law.wm.edu/wmblr FRAUD AGAINST FINANCIAL INSTITUTIONS: JUDGING MATERIALITY POST-ESCOBAR MATTHEW A. EDWARDS* ABSTRACT In Neder v. United States, 527 U.S. 1 (1999), the Supreme Court held that proof of materiality is required for convictions under the federal mail, wire and bank fraud statutes. During the past 20 years, the federal courts have endeavored to apply the complex com- mon law concept of materiality to the federal criminal law context. The Supreme Court’s recent decision in Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016), a civil case involving the False Claims Act, provided the federal appellate courts with an ideal opportunity to reconsider materiality standards in federal fraud cases. In particular, criminal fraud defendants have argued that Escobar’s “subjective” materiality standard should be applied in mail, wire and bank fraud cases involving financial institutions. Thus far, these arguments have failed. Instead, the Courts of Appeals have endorsed an objective materiality standard tethered to what a reasonable bank would do—not the behavior of renegade lenders.
    [Show full text]
  • Judicial "Pruning" of "Garden Variety Fraud" Civil RICO Cases Does Not Work: It's Time for Congress to Act
    Vanderbilt Law Review Volume 43 Issue 3 Issue 3 - Symposium: Reforming RICO: Article 5 If, Why, and How 4-1990 Judicial "Pruning" of "Garden Variety Fraud" Civil RICO Cases Does Not Work: It's Time for Congress to Act Susan Getzendanner Follow this and additional works at: https://scholarship.law.vanderbilt.edu/vlr Part of the Courts Commons, and the Criminal Procedure Commons Recommended Citation Susan Getzendanner, Judicial "Pruning" of "Garden Variety Fraud" Civil RICO Cases Does Not Work: It's Time for Congress to Act, 43 Vanderbilt Law Review 673 (1990) Available at: https://scholarship.law.vanderbilt.edu/vlr/vol43/iss3/5 This Symposium is brought to you for free and open access by Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Law Review by an authorized editor of Scholarship@Vanderbilt Law. For more information, please contact [email protected]. Judicial "Pruning" of "Garden Variety Fraud" Civil RICO Cases Does Not Work: It's Time for Congress to Act Susan Getzendanner* I. INTRODUCTION .......................................... 673 II. CIVIL RICO: THE STATUTORY UNDERLAYMENT ............ 675 III. THE USE OF CIVIL RICO ............................ 677 IV. REFORM OF THE CIVIL RICO PREDICATE OFFENSES ...... 678 A. "Garden Variety Fraud"....................... 679 B. M ultiple Victims .............................. 681 C. Securities Fraud............................... 683 D. Civil RICO Cases Based on Other Predicate Of- fenses ........................................ 684 V. OTHER PROPOSED REFORMS
    [Show full text]
  • Criminal Law and the Administrative Lawyer
    Anatomy of a Corruption Case presented by Patrick K. Hanly, Esq. The Law Office of Patrick K. Hanly 980 Ninth Street Sacramento, California 95814 I. Overview of Prosecuting Agencies U.S. Attorney Grand Jury Indictment District Attorney/State Attorney General Complaint Grand Jury 1 II. How A Prosecution Gets Started Undercover Operation Bri-Spec D.C. operation ABScam Murtha on YouTube Anonymous Informant Quackenbush/Grays unexplained wealth FPPC fields calls anonymously Disgruntled Staffer Cooperating Defendant Disgruntled Contributor Strip clubs; liquor licensees; others seeking favors for money Scorned wife/husband 2 III. How Evidence is Gathered Witness interviews Do not count on Code of Silence Document subpoenas IV. Potential Charges Bribery Section 666. Theft or bribery concerning programs receiving Federal funds (a) Whoever, if the circumstance described in subsection (b) of this section exists - (B) corruptly solicits or demands for the benefit of any person, or accepts or agrees to accept, anything of value from any person, intending to be influenced or rewarded in connection with any business, transaction, or series of transactions of such organization, government, or agency involving any thing of value of $5,000 or more; or 3 Bribery, cont. Section 666, cont. (2) corruptly gives, offers, or agrees to give anything of value to any person, with intent to influence or reward an agent of an organization or of a State, local or Indian tribal government, or any agency thereof, in connection with any business, transaction, or series of transactions of such organization, government, or agency involving anything of value of $5,000 or more; shall be fined under this title, imprisoned not more than 10 years, or both.
    [Show full text]
  • Covid Fraud Tracker
    Subject name(s) Date Law Enforcement Alleged Conduct Summary Relevant statute(s) State Court Type of Action Individual subject? Corporate subject? Follow-on action? Matter Number Dates of unlawful Penalties Press Release Petition/ Agreement/J Announced Agency conduct (civil/criminal fines, Complaint/ udgment incarceration) Indictment Grubhub Holdings Inc. 7/29/2021 Massachusetts AG Consumer fraud Grubhub Holdings Inc. is accused of violating a provision of Massachusetts's economic G. L. c. 93A Massachusetts D. Mass. Civil No Yes No https://www.mas development legislation, which prohibited Grubhub and other third party delivery service enforcement s.gov/news/ag- platforms from charging fees to restaurants that exceed 15 percent of an order's menu healey-sues- price. The fee cap came into effect on January 14, 2021 and remained in place until grubhub-for- Governor Baker lifted the state of emergency in Massachusetts on June 15, 2021. charging- restaurants- illegally-high-fees- during-covid-19- public-health- emergency Dinesh Sah 7/28/2021 USDOJ PPP fraud Dinesh Sah pleaded guilty to wire-fraud and money laundering for submitting 15 fraudulent 18 U.S.C. §§ 1343, 1957 Texas W.D. Tex. Criminal Yes No No 3:20-cr-00484 Incarceration; https://www.justi applications that sought $24.8 million in Paycheck Protection Program ("PPP") loans. Sah enforcement Restitution ce.gov/opa/pr/te filed the claims under the names of various businesses that he owned or controlled, xas-man- claiming these businesses had numerous employees and hundreds of thousands of dollars sentenced-24- in payroll expenses; in reality, no business had employees or paid wages consistent with the million-covid-19- amounts claimed in the PPP applications.
    [Show full text]
  • Taking Action: an Advocate's Guide to Assisting Victims of Financial Fraud
    Taking Action An Advocate’s Guide to Assisting Victims of Financial Fraud REVISED 2018 Helping Financial Fraud Victims June 2018 Financial fraud is real and can be devastating. Fortunately, in every community there are individuals in a position to provide tangible help to victims. To assist them, the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the National Center for Victims of Crime joined forces in 2013 to develop Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraud. Prevention is an important part of combating financial fraud. We also know that financial fraud occurs in spite of preventive methods. When fraud occurs, victims are left to cope with the aftermath of compromised identities, damaged credit, and financial loss, and a painful range of emotions including anger, fear, and frustration. This guide gives victim advocates a roadmap for how to respond in the wake of a financial crime, from determining the type of fraud to reporting it to the proper authorities. The guide also includes case management tools for advocates, starting with setting reasonable expectations of recovery and managing the emotional fallout of financial fraud. Initially published in 2013, the guide was recently updated to include new tips and resources. Our hope is that this guide will empower victim advocates, law enforcement, regulators, and a wide range of community professionals to capably assist financial victims with rebuilding their lives. Sincerely, Gerri Walsh Mai Fernandez President Executive Director FINRA Investor Education Foundation National Center for Victims of Crime AN ADVOCATE’S GUIDE TO ASSISTING VICTIMS OF FINANCIAL FRAUD | i About Us The Financial Industry Regulatory Authority (FINRA) is a not-for-profit self-regulatory organization authorized by federal law to help protect investors and ensure the fair and honest operation of financial markets.
    [Show full text]
  • Tackling Money Mules
    Tackling Money Mules ABA Foundation Webinar December 10, 2020 3:00 – 4:00 ET Moderator • Name: Sam Kunjukunju • Organization: ABA Foundation • Title: Senior Director of Bank Community Engagement • Focus Areas: Elders & Community Development • Phone: 202-663-5418 • Email: [email protected] Speakers • Jackie Blaesi-Freed, Assistant Director, United States Department of Justice • Catheryn Eisaman-Avalos, Vice President of Financial Crimes Risk Strategies, Zions Bancorp • Gauri Sharma, Vice President of Professional Certifications, American Bankers Association Agenda DOJ Money Mule Initiative Banking, Recognizing and Addressing Money Mules ABA Professional Development Resources Free ABA Foundation Materials Questions and Answers Tackling Money Mules Jacqueline Blaesi-Freed Assistant Director Consumer Protection Branch Department of Justice CONSUMER PROTECTION BRANCH • Enforce laws that protect consumers’ health, safety, and economic security • Civil and criminal authority • Embedded law enforcement agents, investigators, and analysts • Coordinating role in the Department’s Elder Justice Initiative, Transnational Elder Fraud Strike Force, and Money Mule Initiative 6 Money Mules 7 THE MONEY MULE PHENOMENON • Growth in transnational criminal organizations targeting consumers, businesses, government funds • Romance fraud, lottery fraud, government imposter fraud, technical support fraud, person-in-need scams • Business email compromise/CEO fraud • Unemployment insurance fraud/PPP • Need for U.S.-based financial infrastructure, obfuscation of
    [Show full text]
  • Returning Rico to Racketeers: Corporations Cannot Constitute an Associated-In-Fact Enterprise Under 18 U.S.C
    Fordham Journal of Corporate & Financial Law Volume 13 Issue 1 Article 1 2008 Returning Rico to Racketeers: Corporations Cannot Constitute an Associated-in-Fact Enterprise Under 18 U.S.C. § 1961(4) Caroline N. Mitchell Jordan Cunningham Mark R. Lentz Follow this and additional works at: https://ir.lawnet.fordham.edu/jcfl Part of the Banking and Finance Law Commons, and the Business Organizations Law Commons Recommended Citation Caroline N. Mitchell, Jordan Cunningham, and Mark R. Lentz, Returning Rico to Racketeers: Corporations Cannot Constitute an Associated-in-Fact Enterprise Under 18 U.S.C. § 1961(4), 13 Fordham J. Corp. & Fin. L. 1 (2008). Available at: https://ir.lawnet.fordham.edu/jcfl/vol13/iss1/1 This Article is brought to you for free and open access by FLASH: The Fordham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Journal of Corporate & Financial Law by an authorized editor of FLASH: The Fordham Law Archive of Scholarship and History. For more information, please contact [email protected]. ARTICLES RETURNING RICO TO RACKETEERS: CORPORATIONS CANNOT CONSTITUTE AN ASSOCIATED-IN-FACT ENTERPRISE UNDER 18 U.S.C. § 1961(4) Caroline N. Mitchell,1 Jordan Cunningham,2 and Mark R. Lentz3 1. Partner specializing in antitrust and trial practice at Jones Day’s San Francisco office. Managing Editor (1999), COMPETITION, the Journal of the Antitrust & Unfair Competition Law Section of the State Bar of California. J.D., magna cum laude, University of Minnesota (1989); A.B. Bryn Mawr College (1984). 2. Former Jones Day associate specializing in complex commercial litigation, including RICO suits.
    [Show full text]
  • U.S. Attorneys' Bulletin Vol 49 No 06, High Tech and Investment Fraud
    High Tech and Nov ember 2 0 0 1 Investment Fraud Volume 49 Num ber 6 In This Issue United States Department of Justice Executive Office for United States Attorneys Office of Legal Education Washingt on, DC In Honor 20535 Kenneth L. Wainstein Director This issue of the United States Attorneys' Bulletin is Contributors’ opinions and dedicated to Michael C. Messer, a senior attorney at the statements should not be considered an endorsement Social Security Administration (SSA). Mr. Messer was by EOUSA for any policy, program, or service appointed a Special Assistant United States Attorney for the Northern District of Illinois on October 10, 2000 The United St ates At torney s’ Bulletin is published pursuant as part of SSA's Anti-Fraud Pilot Project, and was to 28 CFR § 0.2 2(b) detailed to the Criminal Division of the Chicago The United St ates At torney s’ Bulletin is published bi- United States Attorney's Office (USAO). On August 20, monthly by the Executive 2001, while attending a training conference at the Off ice fo r Unit ed Stat es At torn eys, Of fic e of Legal National Advocacy Center (NAC), he was shot and Education, 1620 Pendleton Street, Columbia, South killed in an attempted armed robbery while walking Carolina 2 920 1. Perio dical postage paid at Washington, back to the NAC after dinner. Mike was a wonderful D.C. Postmaster: Send attorney and colleague who served his agency, the USAO , and his community address changes to Editor, United St ates At torney s’ with dedication and distinction.
    [Show full text]
  • Intra-Corporate Mail and Wire Fraud: Criminal Liability for Fiduciary Breach
    Notes Intra-Corporate Mail and Wire Fraud: Criminal Liability for Fiduciary Breach Mail/wire fraud law has evolved from its origins as an antidote to "lot- tery swindles" into a vehicle for attacking a wide range of conduct. Re- cently, a national standard of fiduciary liability, developed by federal courts in mail/wire fraud cases, has been held to govern the obligations of corporate directors and officers to their shareholders.' Public, criminal en- forcement under mail/wire fraud thus overlaps the private, civil enforce- ment of corporate fiduciary obligations. This Note contends that this use of the criminal law to police corporate fiduciary obligations is injurious to corporate shareholders-the supposed beneficiaries, contrary to principles of federalism that apply with special force in the corporate law context, and inconsistent with the principle that criminal proscriptions should be certain and knowable in advance. This recent use of mail/wire fraud law to enforce fiduciary duties has little to do with fraud. The new corporate fiduciary standard is untenable on theoretical grounds, as is the use of criminal sanctions to enforce essen- tially contractual duties. Furthermore, this development in mail/wire fraud clashes with the congressional and judicial policy of minimizing fed- eral involvement in intra-corporate affairs. The Note concludes that, con- trary to accepted notions of legality, courts have used mail/wire fraud law to create a virtual common law crime. 1. See United States v. Weiss, No. 84-1103, slip op. (2d Cir. Jan. 7, 1985); United States v. Siegel, 717 F.2d 9 (2d Cir. 1983). Weiss and Siegel are mail/wire fraud cases premised upon an undisclosed breach of fiduciary duty by a corporate executive.
    [Show full text]
  • Honest-Services Fraud: a (Vague) Threat to Millions of Blissfully Unaware (And Non-Culpable) American Workers
    Georgetown University Law Center Scholarship @ GEORGETOWN LAW 2010 Honest-Services Fraud: A (Vague) Threat to Millions of Blissfully Unaware (and Non-Culpable) American Workers Julie R. O'Sullivan Georgetown University Law Center, [email protected] This paper can be downloaded free of charge from: https://scholarship.law.georgetown.edu/facpub/906 63 Vand. L. Rev. (En Banc) 23-48 (2010) This open-access article is brought to you by the Georgetown Law Library. Posted with permission of the author. Follow this and additional works at: https://scholarship.law.georgetown.edu/facpub Part of the Courts Commons, Criminal Law Commons, Labor and Employment Law Commons, and the Legal Theory Commons 4. O'Sullivan_Page (Do Not Delete) 3/23/2010 6:16 PM Honest-Services Fraud: A (Vague) Threat to Millions of Blissfully Unaware (and Non- Culpable) American Workers Julie R. O’Sullivan I. THE STATUTE REALLY IS VAGUE, AND THE LIMITING PRINCIPLES IDENTIFIED THUS FAR ARE INEFFECTIVE. ......... 30 A. Conduct ...................................................................... 31 1. Duty of Honest Services? ................................ 31 2. Breach? ........................................................... 32 3. Duty to Disclose? ............................................ 34 B. Mental State ............................................................... 35 C. Attendant Circumstances .......................................... 38 II. THE HONEST-SERVICES THEORY MAY PUNISH CONDUCT THAT IS NOT INHERENTLY MALIGN AND THAT IS NOT ACCOMPANIED BY ANY CORRUPT OR WRONGFUL INTENT .......................................... 41 III. IF THE COURT DECIDES TO LIMIT THE REACH OF THE STATUTE RATHER THAN TO STRIKE IT DOWN AS VAGUE, THE COURT OUGHT TO READ “INTENT TO DEFRAUD” TO INCLUDE AN INTENT TO INJURE OR HARM ................................................. 45 CONCLUSION ..................................................................................... 48 It is my firm belief that if any statute is unconstitutionally vague, it is 18 U.S.C.
    [Show full text]
  • Fraud Offenses - Mail, Wire, Bank and Health Care (18 U.S.C
    Fraud Offenses - Mail, Wire, Bank and Health Care (18 U.S.C. §§ 1341, 1343, 1344, 1347) 6.18.1341 Mail Fraud - Elements of the Offense (18 U.S.C. § 1341) 6.18.1341-1 Mail, Wire, or Bank Fraud - “Scheme to Defraud or to Obtain Money or Property” Defined (revised 2/2021) 6.18.1341-2 Mail, Wire, or Bank Fraud - Unanimity Required 6.18.1341-3 Mail or Wire Fraud - Protected Interests: Honest Services (revised 2016) 6.18.1341-4 Mail or Wire Fraud – “Intent to Defraud” Defined (revised 2/2021) 6.18.1341-5 Mail Fraud – “Use of the Mails” Defined 6.18.1341-6 Mail Fraud - Each Use of the Mails a Separate Offense 6.18.1343 Wire Fraud - Elements of the Offense (18 U.S.C. § 1343) (revised 2017) 6.18.1343-1 Wire Fraud - "Transmits by means of wire, radio, or television communication in interstate commerce” - Defined (revised 2015) 6.18.1343-2 Wire Fraud - Each Transmission by Wire Communication a Separate Offense (revised 2/2021) 6.18.1344 Bank Fraud - Elements of the Offense (18 U.S.C. § 1344) (revised 2/2021) 6.18.1344-1 Bank Fraud – “Intent to Defraud” Defined (revised 2014) (revised 2017) 6.18.1347 Health Care Fraud - Elements of the Offense (18 U.S.C. § 1347) (revised 2015) 6.18.1347-1 Health Care Fraud – “Intent to Defraud” Defined 6.18.1347-2 Health Care Fraud - Affecting Interstate Commerce 6.18.1341 Mail Fraud - Elements of the Offense (18 U.S.C. § 1341) Count (No.) of the indictment charges the defendant (name) with mail fraud, which is a violation of federal law.
    [Show full text]