Justia Banking Opinion Summaries

The case concerns the former President and CEO of a New Orleans-based commercial bank, who was charged with conspiracy to commit bank fraud, bank fraud, and making false entries in bank records. The evidence at trial showed that he, along with other bank employees and borrowers, engaged in a scheme to misrepresent the creditworthiness of certain borrowers. This allowed the bank to issue loans to insolvent individuals, who then used the proceeds to pay off overdue and overdraft loans, thereby concealing the true financial state of the bank’s loan portfolio. The defendant did not dispute the existence of these loans but argued that he lacked the intent to defraud the bank.After the bank failed in 2017, resulting in significant losses to the FDIC, a federal grand jury indicted the defendant and several co-conspirators. Some co-defendants pleaded guilty, while the defendant proceeded to trial in the United States District Court for the Eastern District of Louisiana. The jury found him guilty on all counts, and he was sentenced to 170 months in prison and ordered to pay substantial restitution. The district court denied his post-trial motions for acquittal, arrest of judgment, and a new trial.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the sufficiency of the evidence, the jury instructions, the admission of lay and summary testimony, and the denial of a motion to dismiss based on the government’s handling of privileged emails. The Fifth Circuit held that the evidence was sufficient to support all convictions, the jury instructions were proper and tracked the relevant law, the evidentiary rulings were not an abuse of discretion, and the government’s conduct regarding privileged material did not warrant dismissal. The court affirmed the jury’s verdict in full. View "USA v. Ryan" on Justia Law

Law enforcement officers in Baldwin County, Alabama, stopped a vehicle for a traffic violation and discovered three occupants: Timothy Buchanan, Jaleeshia Robinson, and Tyre Crawford. A search of the vehicle revealed forged and stolen identification cards, credit cards, and checks, as well as equipment for producing counterfeit checks. Buchanan admitted to cashing fraudulent checks using stolen or forged identification, and evidence showed he was in frequent communication with his co-defendants about the scheme. Robinson, who cooperated with the government, testified that Buchanan’s role was to cash checks, while she and Crawford created the fraudulent documents and stole checks from mailboxes.The United States District Court for the Southern District of Alabama presided over Buchanan’s jury trial. The jury acquitted him of one count of aggravated identity theft but convicted him on conspiracy to commit bank fraud, possession of five or more identification documents with intent to use or transfer, possession of counterfeited or forged securities, a second count of aggravated identity theft, and possession of stolen mail. The district court sentenced Buchanan to 116 months’ imprisonment and ordered restitution. Buchanan challenged the sufficiency of the evidence for several convictions, the application of a sentencing enhancement for sophisticated means, and the calculation of restitution.The United States Court of Appeals for the Eleventh Circuit reviewed the case. It affirmed Buchanan’s convictions, holding that sufficient evidence supported his convictions under an aiding and abetting theory, and that his aggravated identity theft conviction was not plainly erroneous under Dubin v. United States, 599 U.S. 110 (2023), because the use of another’s identification was central to the predicate offense. However, the court vacated the sentence in part, finding error in the application of the sophisticated means enhancement and in the restitution calculation, and remanded for further proceedings on those issues. View "United States v. Buchanan" on Justia Law

Plaintiffs, American service members and civilians injured or killed in terrorist attacks in Afghanistan, along with their family members, sued Deutsche Bank, Standard Chartered Bank (SCB), and Danske Bank under the Anti-Terrorism Act (ATA) as amended by the Justice Against Sponsors of Terrorism Act (JASTA). They alleged that the banks aided and abetted terrorist organizations by providing banking services to customers involved in tax fraud and money laundering schemes, with proceeds allegedly funding terrorist activities. Plaintiffs also claimed SCB aided the attacks by providing banking services to fertilizer companies whose products were used to make bombs.The United States District Court for the Eastern District of New York dismissed the plaintiffs' amended complaint in its entirety for failure to state a claim. The court found that the plaintiffs did not establish a sufficient nexus between the banks' actions and the terrorist acts that caused their injuries. The court dismissed the complaint with prejudice, concluding that further amendment would be futile.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court's dismissal. The appellate court applied the Supreme Court's decision in Twitter, Inc. v. Taamneh, which clarified the pleading standard for aiding-and-abetting claims under JASTA. The court held that the plaintiffs did not plausibly allege that the banks were generally aware of their role in the terrorist activities or that they provided knowing and substantial assistance to the terrorist organizations. The court emphasized that the plaintiffs' allegations were too attenuated and speculative to support a claim of aiding-and-abetting liability under JASTA. View "Wildman v. Deutsche Bank" on Justia Law

Lester Aceituno was convicted of conspiracy to commit bank fraud and two counts of aggravated identity theft. The fraudulent scheme involved using stolen identification information to open bank accounts, change addresses to rented mailboxes, deposit fraudulent checks, and withdraw funds using debit cards. Aceituno opened accounts in New Hampshire and Massachusetts using stolen identities and signed documents attesting to the accuracy of the information. He also created a mailbox using a stolen identity. The scheme was led by a man known as "Abby," who provided the stolen information.The United States District Court for the District of New Hampshire denied Aceituno's Rule 29 motion, which argued insufficient evidence to prove he knew he was using real persons' identifying information. The court also rejected his claim of prosecutorial misconduct during the government's closing argument and rebuttal. Aceituno was sentenced to 30 months in prison.The United States Court of Appeals for the First Circuit reviewed the case. The court held that sufficient evidence supported the jury's finding that Aceituno knew the identification information belonged to real people. The evidence included Aceituno's repeated use of stolen identities, the bank's verification process, and testimony from a co-conspirator. The court also found that the prosecution's statements during closing arguments were fair inferences from the evidence and did not constitute misconduct. The court affirmed Aceituno's conviction. View "United States v. Aceituno" on Justia Law

Oljine Noguez and Manuel Zepeda Mendoza were investigated for their alleged involvement in an opioid trafficking operation. Following the investigation, the State of Texas seized their bank accounts and cash, initiating four civil-forfeiture actions. The State alleged that the funds were contraband related to the trafficking operation, attaching a sworn declaration and affidavit from the investigating officer, Bryan Bacon, to each notice of seizure. Nearly two years later, the Claimants filed a no-evidence motion for summary judgment, arguing that the State had no evidence to support its claims. The State responded but did not attach any exhibits, instead referencing Officer Bacon’s affidavit.The trial court considered the motion and granted summary judgment for the Claimants, noting that the State did not attach the affidavit to its response. The State then filed a motion for leave to file a response with the affidavit attached, which the trial court denied, finalizing its order granting summary judgment to the Claimants. The State appealed, and the Court of Appeals for the Seventh District of Texas affirmed the trial court’s decision, holding that the State failed to meet its burden by not attaching the affidavit and not sufficiently directing the trial court to specific portions of the affidavit.The Supreme Court of Texas reviewed the case and held that Texas Rule of Civil Procedure 166a(i) does not require the attachment of previously filed summary judgment evidence. The Court found that the State’s response sufficiently pointed out and discussed the evidence, reversing the Court of Appeals’ judgment. The Supreme Court remanded the case to the trial court for further proceedings, instructing the trial court to reconsider the no-evidence motion in light of the opinion that previously filed evidence referenced in a response can be considered without being attached. View "THE STATE OF TEXAS v. THREE THOUSAND, SEVEN HUNDRED SEVENTY-FOUR DOLLARS AND TWENTY-EIGHT CENTS U.S. CURRENCY ($3,774.28)" on Justia Law

William Dexter Lucas was involved in schemes to fraudulently obtain small-business loans from the government and vehicle loans from private institutions. He pleaded guilty to conspiracy to commit bank and wire fraud and waived his right to appeal. His presentence investigation report (PSR) included details of his fraudulent activities and mentioned allegedly fraudulent social security benefits he had been receiving. At sentencing, the district court ordered Lucas to pay restitution to both the private institutions and the Social Security Administration (SSA). Lucas appealed his sentence, challenging the restitution orders for the vehicle loans and social security benefits.The United States District Court for the Southern District of Texas initially handled the case. Lucas objected to the PSR's restitution calculations, arguing that the vehicle loans restitution was ordered to the wrong victim and incorrectly calculated, and that the social security benefits restitution was improper because he was entitled to the benefits and the alleged fraud was not part of the same scheme as the offenses in his indictment. The district court recalculated the vehicle loans restitution but upheld the SSA restitution, finding that Lucas's statement to the SSA was fraudulent and that the SSA fraud was part of the same conduct as the fraud alleged in the indictment.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the SSA restitution was erroneous because the SSA fraud was not part of the same scheme or conspiracy as the offenses in the indictment. The court affirmed the vehicle loans restitution, finding that Lucas's challenge to the calculation was barred by his appeal waiver and that the dealerships were proper victims. The court affirmed the vehicle loans restitution but vacated the SSA restitution award. View "United States v. Lucas" on Justia Law

Matthew Kerns, the sole member and manager of Glade Creek Livestock, LLC, personally guaranteed a loan from First State Bank of Ben Wheeler (FSBBW) using equipment and cattle as collateral. When Glade Creek faced financial difficulties, Kerns sold some of the cattle, leading FSBBW to demand full repayment. Kerns filed for Chapter 7 bankruptcy, and during the automatic stay, FSBBW reported the sale of the collateral to a special ranger with the Texas and Southwestern Cattle Raisers Association (TSCRA). This led to Kerns' indictment and arrest for hindering a secured creditor.The bankruptcy court granted summary judgment in favor of FSBBW, holding that FSBBW's actions fell within the safe harbor provision of the Annunzio-Wylie Money Laundering Act, which protects financial institutions from liability for reporting possible violations of law. Kerns appealed to the district court, which affirmed the bankruptcy court's decision. Kerns then appealed to the United States Court of Appeals for the Fifth Circuit.The Fifth Circuit reviewed the case de novo and affirmed the lower courts' decisions. The court held that FSBBW's report to the special ranger was protected under the safe harbor provision of the Annunzio-Wylie Act, as the special ranger qualified as law enforcement under Texas law. The court also found that Kerns had forfeited his argument for the recusal of the bankruptcy judge by not raising it earlier, despite knowing the basis for recusal since 2021. The court concluded that FSBBW's conduct was shielded from liability, and the summary judgment in favor of FSBBW was affirmed. View "Kerns v. First State Bank" on Justia Law

The case involves Shamond Jenkins, who was convicted of robbing a Centier Bank branch in South Bend, Indiana, in December 2020. Jenkins was identified as a suspect in three robberies in northern Indiana between December 2020 and January 2021. During a traffic stop on January 8, 2021, Jenkins was found with cash, including a bait bill from the South Bend robbery, and was wearing red-and-white Air Jordan sneakers similar to those worn by the robber. Jenkins was charged with multiple counts, including the South Bend bank robbery, to which he pleaded not guilty.In the district court, Jenkins was found guilty of the South Bend bank robbery but not guilty of the Granger Centier Bank robbery. The jury could not reach a unanimous decision on the Check Into Cash robbery. Jenkins objected to the Presentence Investigation Report's recommendations, including an enhancement for obstructing justice by presenting false testimony and the inclusion of juvenile adjudications in his criminal history. The district court overruled these objections and sentenced Jenkins to 100 months in prison.The United States Court of Appeals for the Seventh Circuit reviewed Jenkins's appeal. Jenkins argued that the evidence was insufficient to convict him, that his Fifth and Sixth Amendment rights were violated due to the face mask he had to wear during the trial, and that the district court erred in applying a sentencing enhancement for perjury and in counting his juvenile convictions. The Seventh Circuit found no error in the district court's decisions. The court held that the face mask did not render the in-court identifications unduly suggestive or violate Jenkins's confrontation rights. The court also upheld the sufficiency of the evidence and the sentencing decisions, affirming Jenkins's conviction and sentence. View "USA v Jenkins" on Justia Law

Oladayo Oladokun was convicted in the United States District Court for the Southern District of New York after pleading guilty to conspiracy to commit bank fraud and conspiracy to commit money laundering. His involvement included directing others to open bank accounts to receive stolen or forged checks and launder money. He was sentenced to 125 months in prison followed by three years of supervised release.Oladokun appealed, challenging the district court's calculation of his offense level under the United States Sentencing Guidelines. He argued against the application of an eighteen-level enhancement based on the loss amount, a two-level enhancement for ten or more victims, and a four-level enhancement for his role in an offense involving five or more participants. Additionally, he claimed ineffective assistance of counsel for not requesting a Franks hearing to suppress evidence obtained from his residence.The United States Court of Appeals for the Second Circuit reviewed the case. The court found that the district court did not err in its factual basis for the Guidelines enhancements. It upheld the eighteen-level enhancement for the intended loss amount, the two-level enhancement for ten or more victims, and the four-level enhancement for Oladokun's role in the offense. The court also rejected Oladokun's ineffective assistance claim, noting that even if his counsel had been ineffective, Oladokun failed to show the requisite prejudice because the warrant application was supported by probable cause without the challenged evidence.The Second Circuit affirmed the judgment of the district court. View "United States v. Oladokun" on Justia Law

Keith Todd Ashley, a licensed financial advisor, was charged and convicted on 17 counts of violating federal law, including mail and wire fraud, Hobbs Act robbery, and bank theft. He operated a Ponzi scheme and allegedly murdered one of his clients to steal funds from the client’s bank account and benefit from the client’s life insurance proceeds. The district court sentenced Ashley to 240 months’ imprisonment for each of 15 counts of wire and mail fraud and imposed life sentences for his convictions of Hobbs Act robbery and bank theft.In the United States District Court for the Eastern District of Texas, Ashley was found guilty on all counts presented. He filed motions for continuance and severance, which were denied by the district court. The jury found Ashley guilty on all counts, and the district court sentenced him accordingly. Ashley then appealed, challenging the sufficiency of the evidence for most of his convictions, the reasonableness of his sentence, and the denial of his motions for continuance and severance.The United States Court of Appeals for the Fifth Circuit reviewed the case. The government conceded that there was insufficient evidence to convict Ashley of five counts and that the life-sentence enhancement for his conviction of bank theft did not apply. The Fifth Circuit agreed, affirming some of Ashley’s convictions, vacating others, and remanding the case for resentencing and further proceedings. Specifically, the court affirmed Ashley’s convictions on Counts 1, 3, 14, and 19, vacated his convictions on Counts 2, 4, 5, 6, 9, 10, 11, 12, 13, 15, 16, and 18, and remanded for resentencing. The court also addressed Ashley’s challenges to the procedural and substantive reasonableness of his sentence and the cumulative error doctrine but found no reversible error in those respects. View "United States v. Ashley" on Justia Law