U.S. v. Johns

Record contained sufficient evidence to support bankruptcy fraud charges stemming from defendant’s false representation to Trustee regarding existence of $30,000 second mortgage on debtors’ home. While defendant argued that he made truthful statement regarding existence of said mortgage, record showed that mortgage document did not secure obligation owed to defendant by debtors, and mortgage document that debtors had with third-party was unenforceable. Moreover record supported conviction on charge that defendant obtained property from debtors arising out of defendant’s scheme to purchase distressed homes at inflated prices since defendant proceeded with sale of debtors’ home in spite of Trustee’s objection to said sale. Fact that debtors satisfied all debts listed in bankruptcy proceeding through proceeds of said sale did not require different result. Remand, though, was required for new sentence hearing where Dist. Ct. erred in finding that debtors suffered either actual or intended loss arising out of defendant’s scheme.