U.S. v. Bloom

Record contained sufficient evidence to support defendant’s conviction on wire fraud and investment advisor fraud arising out of misrepresentations defendant made to customers regarding management of their money in defendant’s company that eventually resulted in $600 million loss. Record contained extensive evidence regarding defendant’s actual use of customer’s funds that diverged from defendant’s representations made to his customers with respect to safety of customer’s principal, use of segregated accounts and sources of customers’ interest payments. Defendant also improperly encouraged customers to make deposits at time when defendant knew that his company was on verge of financial collapse. Ct. rejected defendant’s claim that prosecutor committed misconduct by misleading jury with respect to innocent nature of his conduct, since prosecutor’s statements constituted reasonable inferences about evidence. Also, Dist. Ct. did not err in admitting out-of-court statements from various employees of defendant’s company, where defendant’s counsel agreed to admit some statements as business records and other statements under co-conspirator exception to hearsay rule.