U.S. v. Weimert

Record failed to contain sufficient evidence to support defendant’s conviction on wire fraud charge, stemming from his actions in brokering on bank’s behalf sale of bank’s share in commercial real estate development during which defendant misled bank officials into believing that successful buyer would not close deal if defendant were not included as minority partner, and where defendant convinced bank to pay him unusual bonus to enable him to purchase said minority interest in real estate development. While govt. argued that defendant’s actions amounted to scheme to obtain money by fraud, Ct. of Appeals found that defendant’s lack of candor with respect to informing bank about negotiating positions of parties to commercial business deal did not amount to wire fraud conviction, where: (1) all actual terms of deal, including defendant’s fractional interest in purchase of real estate development, were disclosed to both parties and were subject to negotiation; and (2) govt. failed to produce any evidence that defendant misled anyone about material facts or about promises of future actions. Moreover, Ct. found that deceptions during negotiation process about prices and terms parties are willing to accept in commercial deal are not material misrepresentations that could support wire fraud conviction. (Dissent filed.)